Abu Dhabi’s CPI inflation accelerates to 1.4% y/y in Aug 2013

By bne IntelliNews September 17, 2013

Abu Dhabi's CPI inflation accelerated to 1.4% y/y in August from 1.1% the month before on higher transport, food and tobacco and alcoholic prices, Al-ittihad daily reported on Sept 17, citing official data. The statistics office is yet to publish a breakdown by sector.

Despite rising inflationary pressures, amid strong local and expat demand and expansionary public spending on infrastructure projects, Abu Dhabi’s CPI inflation remains anchored by falling housing charges which have the largest weight in the CPI index. The latter fell 0.1% y/y in August, the same as the month before. Tobacco and alcoholic beverage prices increased 8.5% y/y in August and those of transport grew 3.3% y/y, accelerating from 2.4% in July. Food charges rose 3.0% y/y during the month.

In January-August Abu Dhabi’s CPI averaged 1.0% y/y, edging up from 0.9% at end-July. The reading was supported by 5.7% y/y price growth of restaurants and hotels amid strong local and expat demand. Transport costs increased 3.0% over the period. Housing prices dropped 0.6% y/y in the first eight months of 2013.

In monthly terms, the CPI rose 0.2% m/m, easing from a 0.5% growth in July.

Related Articles

Ankara and Tehran join wave of anger directed at Trump’s recognition of Jerusalem as Israel’s capital

US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more

Islamic State is finished declares Iran's President Rouhani

Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more

Turkey the loser as Baghdad rewards Iran with control of Kurdish oil exports

Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more