Dubai’s annual inflation rate decreased to 4.6% in January due to lower transportation costs brought on by reduced oil prices, which also resulted in lower consumer prices.
According to the most recent statistics from the Dubai Statistics Center, Dubai’s Consumer Price Index decreased by 0.6% last month from a reading of 5.2% in December 2022.
According to Edward Bell, assistant director of market economics at Emirates NBD, inflation in the emirate, the commercial and tourist hub of the Middle East, is forecast to average 3.5% this year, down from 4.7% in 2022.
The expense of transportation saw the largest decrease in the CPI last month, dropping by 8.7% from December. In addition, the costs of leisure, sports, and entertainment decreased by about 6.4%, while tobacco prices decreased by 5%.
From a 2022 high of 38% last summer, annual inflation in the transit component of the CPI basket has decreased to 4.6% in January, according to Mr. Bell.
Following the start of Russia’s conflict with Ukraine in February of last year, Brent, the benchmark for two thirds of the world’s oil, fluctuated wildly.
The second-largest economy in the Arab world, the UAE, has experienced comparatively little inflation in comparison to the global average as it works to recover from the pandemic’s economic slowdown.
According to the UAE Central Bank, the UAE economy is projected to have expanded by 7.6% last year, the most in 11 years, following growth of 3.9% in 2021.
Consumer prices in the Emirates have stayed low when compared to the norm worldwide, as is the case with its GCC counterparts.
The Central Bank predicted in its Quarterly Economic Review 2022 that inflation would have hit 4.9% in 2022.
In contrast, the International Monetary Fund estimates that the worldwide inflation rate is 8.8%.
According to Emirates NBD, the expense of housing and utilities in Dubai, which makes up more than 40% of the CPI basket, increased by 0.4% from December to 4.4%.
Source: The National News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
