United Arab Emirates: Consumer prices decline in February for 14th straight month
April 14, 2020
Consumer prices fell 0.26% month-on-month in February, following January’s 0.09% decrease. February´s reading was primarily driven by markedly lower prices for recreation and culture, and transportation, while an uptick in textiles, clothing and footwear costs softened the decline.
In year-on-year terms, consumer prices dropped 1.3% in February, matching the decline recorded in January and thus marking the 14th straight month of declining prices. Meanwhile, annual average consumer prices dipped 1.7% year-on-year in February, marginally up from January’s 1.8% decrease.
Going forward, inflation is predicted to return this year on a supportive base effect, although relatively low global oil prices are set to moderate the rise.
Author: Stephen Vogado, Economist