UAE inflation eases as transportation cost falls

UAE inflation eases as transportation cost falls

Dubai Consumer Price index grew by 1% during July-2023

Dubai's CPI was the lowest in the last 17 months. — KT file

Published: Tue 29 Aug 2023, 5:02 PM

Inflation in the UAE recorded the smallest growth 17 consecutive months in July in line with the trend in the rest of the GCC where price increases remained significantly lower than counterparts in the Middle East and around the globe.

The Dubai Consumer Price index grew by 1.0 per cent during July-2023 as compared to the 5.2 per cent increase it witnessed during July 2022. This was the smallest growth witnessed by the Dubai CPI in the last 17 consecutive months, Kamco Invest said in its report.

“The drastic decline of Dubai’s CPI was mainly due to the drop in Transportation Group costs which witnessed 19.7 per cent fall during July-2023. The fall in transport costs more than compensated for the 6.1 per cent year on year growth of the housing, water, electricity and gas group during the month. Overall, only three out of Dubai’s 13 CPI subgroups recorded Y-o-Y decreases during the month,” said the report.

On the other hand, certain key subgroups saw year-on-year growth during July-2023; namely food and beverage group (3.2 per cent),