Dubai inflation sees moderate uptick

Dubai inflation sees moderate uptick

The Dubai Consumer Price index witnessed a moderate uptick of 3.3 per cent during December 2023 as compared to the 3.4 per cent increase it witnessed during December-2022, a report showed.

According to Kamco Invest’s GCC Inflation Update for February, among the six GCC countries, only Dubai reported an increase in its average annual inflation rate which increased from 2.9 per cent in 2022 to 3.3 per cent in 2023. On the other hand, the rest of the GCC countries reported a decline in their annual average inflation rate from 2022 to 2023. Average annual inflation rate for Kuwait declined from 4.0 per cent in 2022 to 3.6 per cent in 2023. Similarly, average annual inflation rate for Saudi Arabia dipped from 2.5 per cent in 2022 to 2.3 per cent in 2023. According to the IMF, the primary factors that allowed the GCC regional countries to control their inflation so well are among other things, the combination of subsidies in energy sector, the prevalence of administered prices on basic food items and food security strategies, and the wider continuing economic diversification efforts.

Dubai’s CPI index growth was primarily driven by the 6.1 per cent increase in the housing, water, electricity and