UAE: Inflation in Dubai accelerated in February
Inflation in Dubai picked up to 4.9% in February, rising from January’s 4.6%. Looking at the details of the release, the acceleration was largely driven by stronger increases in prices for food and beverages, as well as for housing and utilities. These price developments more than offset moderating prices pressures for transport.
Accordingly, the trend pointed up; annual average inflation rose to 5.1% in February, up from January’s 4.9%.
Meanwhile, consumer prices in Dubai rose 0.77% over the prior month, contrasting January’s 0.58% decline.
Data for the UAE as a whole is not available past Q2 2022, when inflation accelerated to 6.8% (Q1 2022: 3.4%). That said, in line with price developments in Dubai, price pressures in the UAE should have peaked in Q3 2022 and then eased at the end of the year. Moreover, our panelists believe the downward trend should continue in coming quarters as interest rates rise further and external price pressures dim.