UAE: Consumer prices fall at sharper rate in November
Consumer prices decreased 0.11% in month-on-month terms in November, swinging from October’s 0.04% increase. The reading reflected lower prices for housing, water, electricity and gas, as well as for transport. However, these were partly offset by higher prices for communications and restaurants and hotels.
Meanwhile, consumer prices dropped 2.4% in annual terms in November, worsening from October’s 2.2% drop. The trend pointed mildly downwards, with the annual average variation of consumer prices coming in at minus 2.0% in November (October: -1.9%).
Consumer price pressures are projected to have remained subdued in December. In 2021, inflation should make a timid comeback as the economy fully reopens and activity picks up on strengthening aggregate demand, international trade and oil demand.