Falling Dubai transport costs drive down January inflation rate

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.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Iran-Saudi row threatens any OPEC deal, puts role in question

Iran-Saudi row threatens any OPEC deal, puts role in question

Less than six months after the lifting of Western sanctions,...

Saudi Arabia's rulers adapt message for social media age

Saudi Arabia's rulers adapt message for social media age

Saudi Arabia's leaders have historically courted public opinion...

What pushes Jordanian entrepreneurs to succeed?

What pushes Jordanian entrepreneurs to succeed?

Jordan, one of the middle east’s smallest markets, has produced...

1
Most Discussed
sponsoredTracking