We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Fri 27 Mar 2015 02:29 AM

Font Size

- Aa +

UAE's inflation edges down from near 6-year highs

February rate falls to 3.6% despite continuing upward pressure from cost of housing, utilities

UAE's inflation edges down from near 6-year highs

The UAE's inflation rate edged down from near-six year highs in February despite continuing upward pressure from the cost of housing and utilities, according to the UAE National Bureau of Statistics.

Inflation fell to 3.6 percent year-on-year from 3.7 percent the previous month, which was the highest level since March 2009.

Housing and utility costs, which account for over 39 percent of consumer expenses, jumped 7.4 percent from a year earlier in February and rose 0.2 percent from the previous month.

Food and beverage prices, which account for nearly 14 percent of the basket, rose 0.9 percent year-on-year and edged up 0.4 percent month-on-month, according to the figures which were cited by Reuters.

The latest figures follow a survey published earlier this month in which around half of expats in the UAE are considering leaving the country due to the rising cost of living.

A YouGov study into the saving habits of Emiratis and expats found that while 42 percent say they have improved their position financially in recent years, 50 percent of employed expats would consider leaving the UAE due to the high cost of living.

Of the 1,104 respondents, 56 percent said rent was impacting most on their financial well-being, while 13 percent said it was education.

When asked how they were coping with the cost of living in the UAE, 56 percent either said somewhat difficult (40 percent) or very difficult (16 percent).

In February, Dubai's inflation rate edged down to 4.3 percent year-on-year from 4.5 percent the previous month, which was the highest level since May 2009.

February inflation in Abu Dhabi also dropped from its January level, which was the highest since at least January 2009, according to the Abu Dhabi Statistics Centre, easing to 4.6 percent from five percent.

Arabian Business: why we're going behind a paywall