United Arab Emirates: Consumer prices end year with 12th straight decline
February 4, 2020
Consumer prices fell 0.23% month-on-month in December, contrasting November’s 0.13% increase. December’s result was primarily driven by lower prices for tobacco and transportation.
In year-on-year terms, consumer prices dropped 1.4% in December, thus matching the decline from November. Meanwhile, annual average consumer prices dipped 1.9% year-on-year in December, marginally down from November’s 1.8% decrease.
Going forward, inflation is predicted to return this year on the back of stronger economic activity and lower interest rates, although relatively low global oil prices are set to temper the rise.
Author: Stephen Vogado, Economist