By Sarah Townsend
Average inflation rate in 2016 was 1.7 percent, previous statistics showed
The inflation rate in consumer prices in the UAE during the first five months of 2017 stood at 2.2 percent, according to the Abu Dhabi Statistics Centre (SCAD).
The relative change rate in consumer prices during May hit 2 percent as compared with the same month in 2016, SCAD’s latest report said.
It attributed the increase to a 3.5 percent rise in the price of housing, water, electricity, gas and other types of fuels, which accounted for 55.3 percent of the total price hike during the first five months of the year.
The hike in transport prices claimed 33.1 percent of the total rise during the first five month of 2017 as compared to the same period in 2016, SCAD said in a statement carried on state news agency WAM.
Meanwhile, prices in the recreation and culture category dropped by 9 percent during the first five months of 2017 compared to the same period in 2016, contributing 19.3 percent to the reduced inflation rise.
Analysts including Abu Dhabi Commercial Bank forecast last year that the UAE’s annual average inflation rate would accelerate to 2.8 percent in 2017, up from 1/7 percent in 2016.
UAE consumer inflation accelerated to 2.3 percent in January, up from 1.24 percent in December, according to the Federal Competitiveness and Statistics Authority.
Economists have forecast a further rise in consumer price inflation in 2018 to 4.8 per cent, with the planned introduction of 5 percent value added tax (VAT).
Reality shows a totally different picture. For eg Doctor & clinic fees have increased 150% in last 10 years. Cost of medicines are abnormally high. Fines have been hiked by minimum 100%. Utilities cost double, new kinds of fees and service charges have been instituted almost at every place and which consist almost 10% of an average middle class group income. Airlines hike air fares by 200% during school breaks and festival holidays, while at other times they recover through meaningless taxes & surcharges. Dubai is now a European city in terms of cost of living, but with salary levels of sub-continent for majority. Only some western expats in management and senior positions and the Public Sector and Govt employees have fantastic remunerations and most things free. Majority expats spends 100% of what they earn to make ends meet. This is the fact. The intention is if you want good standards, infrastructure & security you have to pay.