United Arab Emirates: Consumer prices continue to decline in January
March 3, 2020
Consumer prices fell 0.09% month-on-month in January, following December’s 0.23% decrease. January´s reading was primarily driven by lower prices for textiles, clothing and footwear, recreation and culture, and utilities, while rising costs of food and beverages softened the decline.
In year-on-year terms, consumer prices dropped 1.3% in January, softening marginally from December’s 1.4% fall but nonetheless marking the 13th straight month of declining prices. Meanwhile, annual average consumer prices dipped 1.8% year-on-year in January, marginally up from December’s 1.9% decrease.
Going forward, inflation is predicted to return this year on the back of strengthening economic activity and an uptick in private consumption, although relatively low global oil prices are set to moderate the rise.
Author: Stephen Vogado, Economist