United Arab Emirates Inflation February 2021

United Arab Emirates

United Arab Emirates: Consumer prices continue to fall in February

April 22, 2021

Consumer prices dropped 0.41% in February over the previous month, swinging from the 0.15% increase logged in January. February’s result marked the sharpest decrease in prices in five months. The reading chiefly reflected lower prices for housing, water, electricity and gas, as well as for food and beverages. The overall decrease was cushioned by higher prices for transportation, however.

Consumer prices declined 2.0% on an annual basis in February, accelerating from January’s 1.9% fall. Meanwhile, the trend pointed down, with annual average variation of consumer prices coming in at minus 2.2% in February, down from January’s minus 2.1%.

Consumer price pressures will have remained subdued in Q1. Looking ahead, however, the fall in prices should continue to moderate in Q2 and inflation should come back in H2 with the strengthening of economic activity as the Covid-19 vaccine is gradually rolled out and restrictions globally lifted.

FocusEconomics Consensus Forecast participants expect consumer prices to grow 0.8% on average in 2021, which is unchanged from last month’s forecast. For 2022, they see inflation averaging 1.9%.

Author:, Junior Economist

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United Arab Emirates Inflation Chart

UAE Inflation February 2021

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Federal Competitiveness and Statistics Authority (FCSA).

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