United Arab Emirates: Consumer prices continue to fall in August
October 23, 2019
Consumer prices increased 0.33% month-on-month in August, contrasting July’s 0.79% fall. August’s print was driven by higher prices for transportation, and food and beverages.
In year-on-year terms, consumer prices fell 2.0% in August, softer than July’s 2.2% decline. Meanwhile, annual average consumer prices fell 0.9% year-on-year in August, down from July’s 0.4% decrease.
Looking at 2020, inflationary pressures should return on the back of government measures to stabilize the flagging the real estate market and stronger economic growth. Moreover, the Central Bank’s recent rate cuts should also provide some upward price pressure next year.
Author: Steven Burke, Economist