Dubai's inflation rate hits highest level since May 2009

New consumer price data reveals that housing and utility costs drive jump in inflation levels
Dubai's inflation rate hits highest level since May 2009
By Staff writer
Tue 21 Oct 2014 01:10 PM

Dubai's inflation rate rose to its highest level since May 2009 in September, driven by housing and utility costs, according to consumer price data released by Dubai Statistics Centre on Tuesday. 

Inflation rose to 4.2 percent year-on-year with housing and utility costs, which account for almost 44percent of consumer expenses, rising 6.5 percent year-on-year, the fastest increase since 2008, and 0.4 percent month-on-month in September.

Food and beverage prices, which account for 11 percent of the basket, increased 3.7 percent on an annual basis and 1.3percent from the previous month, according to the figures which were cited by Reuters.

Separately, the National Bureauof Statistics released consumer pricedata on Tuesday, showing UAE inflation at 2.9 percent year-on-year in September, its highest level since March 2009.

Housing and utility costs rose 4.1 percent year-on-year and 1.5 percent month-on-month in September.

Food and soft drink prices increased 2.5 percent on an annual basis and 0.9 percent from the previous month.

Analysts polled by Reuters in September forecast average inflation in the UAE would accelerate to 2.5 percent in 2014 and 3.0 percent in 2015 from 1.1 percent in 2013.

Earlier this month, real estate consultants Knight Frank said prime rents in Dubai continue to outpace wage inflation which is raising concerns about affordability, leading some to consider buying instead of renting.

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