Font Size

- Aa +

Sun 21 Jun 2015 02:47 PM

Font Size

- Aa +

Dubai's May inflation rate jumps to six-year high

Inflation rise is driven by big jump in housing and utility costs, which account for 44% of consumer expenses

Dubai's May inflation rate jumps to six-year high
Steep increases in housing costs have driven Dubais inflation rate to its highest level since May 2009.

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

Inflation rose to 4.7 percent year-on-year with housing and utility costs, which account for almost 44 percent of consumer expenses, jumping 7.8 percent from a year earlier.

The inflation rate was 0.7 percent higher than the previous month, the data showed.

Food and beverage prices, which account for 11 percent of the basket, rose by 1.7 percent on an annual basis, according to the figures which were cited by Reuters.

Dubai and Abu Dhabi have been ranked as the 23rd and 33rd most expensive cities to live in, according to Mercer’s 2015 Cost of Living Survey published last week.

The two cities have experienced a significant jump compared to 2014, with Dubai soaring 44 places from last year’s position at 67 and Abu Dhabi going up 35 places 68th in 2014.

Steep increases for expatriate rental accommodations in both cities partly drove this rise up the list, Mercer said.