UAE: Inflation inches up in April

UAE Inflation

UAE: Inflation inches up in April

Consumer prices fell 0.23% in April from the previous month, a softer decrease than the 0.65% month-on-month fall observed in March. This evolution suggests that prices are starting to stabilize after several months of across-the-board declines, resulting from price adjustments following the introduction of a 5% VAT in early January. Prices increased sharply that month before falling in subsequent months as large numbers of companies kept compressing their margins in a bid to support demand.

While evidence indicates this was still the case in April to some extent, several product categories recorded improving price dynamics, with prices either increasing, or decreasing at a softer pace. The improvement was notable among basic item categories such as food and beverages; textiles, clothing and footwear; and transportation. Overall, according to the Federal Competitiveness and Statistics Authority, the biggest negative contribution to the monthly reading in April came from decreases in the prices of housing, water, gas and electricity—which carries a weight of over a third of the index. The biggest positive contribution to the price index was caused by increases in the price of textiles, clothing and footwear; and recreation and culture, in that order.

Meanwhile, inflation edged up marginally to 3.5% in April, from 3.4% in March. Annual average inflation inched up from 2.4% in March to 2.5% in April.

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