News Column

Dubai's CPI up 3.4 per cent in July

August 12, 2014

Staff Report



Dubai: Dubai's consumer-price index (CPI) climbed 3.41 per cent in July from the same period a year earlier, and 0.46 per cent from June, according to data by the Dubai Statistic Centre that was released on Tuesday.

Alcoholic beverages and tobacco posted the highest year-on-year price increase in July- up 6.34 per cent, followed by housing and utility, which account for almost 44 per cent of consumer expenses, with 5.8 per cent.

Consumer prices of education and food and non-alcoholic beverages were up 4.87 per cent and 2.75 per cent, respectively.

Meanwhile, consumer prices of alcoholic beverages and tobacco rose 5.32 per cent month-on-month in July, while that of housing and utility increased by 1.15 per cent during the same period.

Prices of education was unchanged month-on-month, and edged down by 0.57 per cent for food and non-alcoholic beverages.

Additionally, consumer prices rose for furnishings, household equipment and routine household maintenance by 3.33 per cent year-on-year in July, restaurants and hotels by 3.14 per cent, health by 2.52 per cent, miscellaneous goods and services by 1.79 per cent, transport by 1.89 per cent and communication by 2.46 per cent.

However, prices fell for clothing and footwear (3.08 per cent) and recreations and culture (0.77 per cent).

The annual inflation rate in Dubai rose to 2.74 per cent in the first six months of the year from 1.6 per cent during the same period last year.

Last month, the international Monetary Fund (IMF) said in its Article 4 Consultation with the UAE that inflation is expected to increase due to higher rents. The IMF has forecast UAE inflation rate at 2.2 per cent and 2.5 per cent for this year and the next, respectively, and said that the strengthening real estate cycle, particularly in Dubai's residential market, could attract increased speculative demand leading to higher inflationary pressure.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Gulf News (United Arab Emirates)


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters