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2.2pc INFLATION FORECAST

Dubai consumer prices surge 2.7pc

Dubai, July 18, 2014

The consumer prices in Dubai surged at a record 2.7 per cent in the first half of the year, as compared to the same  period last year, spurred by price escalation in goods and services, said a report.
 
The group comprising housing, water, electricity, gas and other fuels registered the strongest price escalation of 4.5 per cent, said the Khaleej Times report, quoting data revealed from the Dubai Statistics Centre (DSC).
 
The education group followed with 4.4 per cent, while food and non-alcoholic beverages group’s price increased 3.3 per cent, and furnishings, household equipment and routine household maintenance group rose by 2.5 per cent, it said.
 
Other consumer goods groups that registered price increases included alcoholic beverages and tobacco, restaurants and hotels, health, miscellaneous goods and services, transport, communication, and recreation and culture. However, prices of clothing and footwear fell 2.8 per cent. 
 
The inflation rate in the food and non-alcoholic beverages group surged as a result of an increase in the prices of fish and seafood, followed by the prices of meat and food products. An increase in the prices of alcoholic beverages by 5.9 per cent and of tobacco by 1.2 per cent sent the group inflation up, said the report.
 
The inflation rate of education group has increased due to an increase in post-secondary non-tertiary education fees, followed by secondary education fees and pre-primary and primary education fees, it said.
 
The period witnessed increases in prices of gas, followed by hike in rents and rise in price of liquid fuels. Inflation surge in restaurants and hotels group was due to an increase in the prices of hotel accommodation services by 7.6 per cent and restaurants, cafés and the like by 2.1 per cent.
 
The main components of the consumer price index are - housing (39 per cent of the total weight); food and soft drinks (13.9 per cent) and transportation (9.9 per cent). The textiles, clothing and footwear account for seven per cent; communications for 6.9 per cent and miscellaneous goods and services for five per cent.
 
The International Monetary Fund forecast inflation in the UAE to increase to 2.2 per cent this year, compared to 1.1 per cent last year, said the report.
 
A rise in rents by up to 60 per cent in Dubai  last year and smaller rises in the capital have triggered an upswing in inflationary pressures, it added.



Tags: Dubai | prices | consumer |

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