Dubai’s CPI inflation brakes to 1.9% y/y in January

By bne IntelliNews February 19, 2016

Falling transport, clothing and tobacco prices, coupled with slower housing and food price growth, cut Dubai’s CPI inflation to 1.9% y/y in January from a 3.1% annual rise the month before, according to data released by the statistics office.

Housing costs, which make up 44% of the CPI basket, rose a mild 0.5% m/m in January, cutting the annual growth to 4.4% from 5.6% y/y in December last year. The reading remains mainly underpinned by soaring rents and low prior-year base. Rent prices will keep rising in the near term amid strong expats demand.

Food and non-alcoholic prices (11% of the index) dropped 1.9% m/m in January on favourable seasonal factors and lower imported inflation, reducing the annual growth to 3.1% from 3.3% in December.

Transport costs (9.08% of the index) also shrank 2.7% m/m widening the annual deflation to 4.1% from 1.6% y/y in December. The federal government liberalized the fuel prices in August last year to cut the budget deficit.

Clothing and footwear charges dropped 4.8% y/y, the same as in December.

Education prices grew 4.8% y/y in January, the same a month earlier.

In 2015, Dubai’s CPI inflation averaged 4%. The reading, which bodes well with government efforts to curb rising inflationary pressures amid soaring public spending and consumer demand, was kept anchored by falling energy prices and related imported inflation. The pattern will keep the CPI inflation well anchored in the near term.

Related Articles

EBRD prepares to welcome Lebanon into fold

The EBRD is set to welcome its 66th member country and the fifth from the southern and eastern Mediterranean (SEMED) region once the Lebanese government finalises the last steps of the joining ... more

Russia and Saudi Arabia to launch joint projects worth $3bn in 2017

Russia and Saudi Arabia will launch joint projects worth $3bn by the end of 2017, the speaker of Russia’s Federation Council Valentina Matviyenko said at talks with members of the Russian-Saudi ... more

Egypt’s President El Sisi to announce state of emergency after church bombings

Egypt’s President Abdel-Fattah El Sisi announced in a televised speech his intention to impose a nationwide state of emergency for three months following two deadly bomb attacks on Christian ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Dismiss