Dubai’s CPI inflation edged down to 4.33% y/y in February from a five-year high of 4.5% y/y the previous month as strong demand for housing, clothing, footwear and furniture largely offset falling food prices, the state news agency WAM reported on March 11. The statistics office has not published a breakdown yet.

Rising prices across the board amid strong private consumption and renewed confidence will continue to fuel Dubai’s CPI inflation in the near term despite lower crude oil prices.

The reading confirms government concerns about the heating economy amid unprecedented public spending on infrastructure and rebounding trade, property and commercial activity. In 2014, Dubai’s CPI inflation hit 3.37%, spiking from just 1.31% in 2013.

In monthly terms, the CPI grew 0.24% in February, cooling from a 0.8% m/m increase the previous month.

Housing costs, which make up 44% of the CPI basket, grew 0.65% m/m in February, keeping the annual growth at 7.56%, the same as in January.

Food and non-alcoholic prices (11% of the index) rose 0.22% m/m (down 1.8% m/m in January), narrowing the annual decline to 0.64% in February from 1.6% y/y a month earlier.

Tobacco and alcoholic prices grew 9.35% y/y in February, the same as the month before.

Clothing and footwear charges also remained unchanged in annual terms, rising 8.3% in February, the same as a month earlier.