Dubai's inflation rate drops to under 2%; transport cost inflation falls but housing costs continue to rise
Falling transport costs - a result of lower gasoline prices in the UAE - drove down Dubai's inflation rate to 1.9 percent in January, according to new figures.
The Dubai Statistics Centre released its January consumer price data for the emirate on Tuesday which showed that transport cost inflation, which accounts for 9 percent of total inflation, fell 4.1 percent year-on-year as the UAE cut gasoline prices in line with falling global oil prices.
Housing and utility costs, which account for almost 44 percent of consumer expenses, rose 4.4 percent from a year earlier in January while food and beverage prices, which account for 11 percent of the basket, climbed by 3.1 percent.
The slowdown in Dubai's inflation rate, which stood at 4,5 percent in January 2015, comes as growth at UAE non-oil private sector firms slows, with business conditions improving at the weakest rate since March 2012.
Underpinning the slowdown last month was a relatively subdued rise in new work, which was linked in turn to a near-stagnation in new export business, according to the latest Emirates NBD UAE Purchasing Managers' Index.