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

Erdogan warns Iraqi Kurds will lose “opportunities” if independence vote proceeds

Turkish President Recep Tayyip Erdogan has warned the Iraqi Kurds that it is in their interests to call off their planned September 25 independence referendum because it “may lead to a process that ... more

Russia’s Rosneft mulls Kurdistan-Turkey-Europe gas pipeline

Russia’s Rosneft is exploring the possibility of building a 30bn cubic metre (bcm) pipeline that would from 2020 deliver natural gas supplies from the Iraqi Kurdistan region to Turkey and ... more

‘Fruit juice moment’ indicates Iran making serious trade incursions in blockaded Qatar

An image of a ‘Produced in Iran’ fruit juice brand aboard a Qatar Airways flight might not appear at all exciting but to Iranians discussing the trade opportunities generated for the Islamic ... more