UAE: Dubai inflation comes in at highest level since October 2023 in April

UAE Inflation April 2024

UAE: Dubai inflation comes in at highest level since October 2023 in April

Inflation in Dubai came in at 3.9% in April, which was up from March’s 3.3%. April’s result marked the highest inflation rate since October 2023. A rebound in transport prices was largely behind the acceleration. Housing and utilities price pressures also picked up, rising at a rapid rate that exceeded that of headline inflation for the 14th month running; rent prices have risen sharply in recent months due to strong population growth, among other factors.

The trend pointed up slightly, with annual average inflation in Dubai coming in at 3.1% in April (March: 3.0%).

Finally, consumer prices in Dubai increased 0.76% in April over the previous month, picking up from the 0.24% rise seen in March. April’s uptick marked the highest reading since September 2023.

EIU analysts commented on the outlook for UAE-wide inflation:

“We expect that, following an uptick in 2022-23, inflation will remain more contained in 2024-28, averaging 2.1%, as international non-oil commodity prices fall and then stabilise 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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