Dubai’s CPI inflation cools to 4.1% y/y in March

By bne IntelliNews April 19, 2015

Falling food and beverages prices offset surging housing, tobacco and clothing charges, helping trim Dubai’s CPI inflation to 4.05% y/y in March from 4.33% the month before, data from the statistics office showed. The prior-year low base, coupled with rebounding trade, tourism and real estate activity will fuel further inflationary pressures in 2015, boosting Dubai’s and consequently the UAE’s national price growth. 

In monthly terms, the CPI grew 0.2% in March, virtually the same as in February.

Food and non-alcoholic beverages prices (11.1% of the basket) dropped 0.1% m/m in March on favourable season factors, deepening the annual deflation to 1.9% from 0.6% y/y in February.

Those of housing, which have the largest weight in the CPI (43.7%), grew 0.2% m/m, trimming the annual growth to a still high 7.4% from 7.6% y/y in February. Tobacco and alcoholic beverages costs jumped 9.4% y/y in March while those of clothing and footwear climbed 8.7% y/y. Strong tourism activity lifted hotels and restaurants prices by 1.2% m/m and 3% y/y in March.

Related Articles

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more