UAE: Consumer prices continue to slide further in February
Consumer prices fell 0.30% month-on-month in February, coming in below the 0.12% decline recorded in January. The February print came on the back of lower prices for food and beverages; restaurants and hotels; recreation and culture; and communications.
In year-on-year terms, consumer prices fell 2.5% in February, ticking down from January’s 2.4% decline. This was still largely due to a steep base effect from 2018, as the government had introduced a 5% Value Added Tax in January of that year, which was progressively absorbed by the economy over the following months as firms reduced their selling prices.