UAE: Consumer prices continue to fall in February

UAE Inflation

UAE: Consumer prices continue to fall in February

Consumer prices dropped 0.41% in February over the previous month, swinging from the 0.15% increase logged in January. February’s result marked the sharpest decrease in prices in five months. The reading chiefly reflected lower prices for housing, water, electricity and gas, as well as for food and beverages. The overall decrease was cushioned by higher prices for transportation, however.

Consumer prices declined 2.0% on an annual basis in February, accelerating from January’s 1.9% fall. Meanwhile, the trend pointed down, with annual average variation of consumer prices coming in at minus 2.2% in February, down from January’s minus 2.1%.

Consumer price pressures will have remained subdued in Q1. Looking ahead, however, the fall in prices should continue to moderate in Q2 and inflation should come back in H2 with the strengthening of economic activity as the Covid-19 vaccine is gradually rolled out and restrictions globally lifted.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest