UAE: Dubai inflation drops in March

UAE Inflation March 2024

UAE: Dubai inflation drops in March

Inflation in Dubai ticked down to 3.3% in March, slightly down from February’s 3.4%. The slowdown was largely due to weaker price pressures for restaurants and accommodation services plus a fall in the cost of personal care, social protection and miscellaneous goods and services. That said, housing and utilities prices continued to rise at a rapid rate, exceeding the general rate of inflation for the twelfth month running.

In addition, the trend pointed down mildly, with annual average inflation in Dubai coming in at 3.0% in March (February: 3.1%).

Finally, consumer prices in Dubai increased 0.24% in March over the previous month, moderating from February’s 0.54% rise.

On the outlook, analysts at EIU commented:

“Following an uptick in 2022 and early 2023, we expect inflation to remain more contained in 2024-28, averaging about 2%, as international commodity prices fall on average and the property market boom slows. More extensive trade deals will ease import costs. High oil-related liquidity and strong domestic demand will nonetheless keep inflation positive. However, disruption to shipping routes could cause a temporary spike in prices in 2024, as will a rise in the VAT rate, which will probably occur in 2026.”

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