UAE: Consumer prices slide at steepest ever rate in May
July 2, 2020
Consumer prices increased 0.09% in May over the previous month, swinging from the 0.09% fall logged in April. May's result marked the first increase in prices since November 2019.
Consumer prices fell 2.7% on an annual basis in May, a sharper fall than April’s 1.9% drop and marking the steepest decline on record. Accordingly, the trend pointed down slightly, with the annual average variation of consumer prices coming in at minus 1.8% in May (April: -1.7%).
Going forward, consumer prices are projected to remain in deflationary territory this year due to low oil and gas prices, and contracting household spending amid spiking unemployment.
Author: Stephen Vogado, Economist