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

UAE’s Masdar, Uzbekhydroenergo partner up to evaluate potential of national hydro power storage

United Arab Emirates renewable energy company Masdar has partnered with Uzbekhydroenergo to evaluate the potential of national hydroelectric power storage projects. Masdar and Uzbekhydroenergo, a ... more

Morocco allocates 10,000 sq km to green hydrogen projects

The Moroccan government plans to allocate 10,000 square kilometres to green hydrogen projects as it continues its steps towards energy transition, according to a statement from the cabinet on March ... more

Egypt's president approves $5.8bn social protection package

Egyptian President Abdul Fattah El Sisi has announced an urgent EGP 180bn ($5.82bn) social stimulus package to be implemented starting in March.  The announcement on Wednesday ... more

Dismiss