UAE: Consumer prices record joint-smallest fall since April in December

UAE Inflation December 2020

UAE: Consumer prices record joint-smallest fall since April in December

Consumer prices increased 0.09% in December over the previous month, swinging from the 0.11% fall seen in November. December’s result marked the sharpest increase in prices since June. The reading reflected higher prices for transportation, and education. However, the increase in prices was capped by lower prices for housing, water, electricity and gas, as well as for food and beverages.

Meanwhile, consumer prices declined 2.1% on an annual basis in December, a more moderate drop than November’s 2.4% decrease. December’s reading marked the joint-smallest dip in consumer prices since April. Meanwhile, the trend pointed down slightly, with the annual average variation of consumer prices coming in at minus 2.1% in December (November: -2.0%).

Consumer price pressures will likely have remained subdued in the first month of the year. This year, price pressures are projected to increase, as the Covid-19 vaccine is rolled out and restrictions are eased. Moreover, higher household and capital spending should help bolster prices. Nevertheless, inflation will remain relatively muted compared with regional peers.

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