United Arab Emirates: Inflation in Dubai recedes gain in September

Inflation in Dubai softened for a second consecutive month in September, easing to 5.4%, down from August’s 6.0% reading. The moderation was largely due to softer increases in prices for food and beverages, as well as for transport. These more than offset brisker price increases for housing and utilities.

Meanwhile, consumer prices in Dubai decreased a softer 0.62% in September over the prior month, following August’s 0.75% fall.

While detailed monthly data for the UAE has not been published since December 2021, average inflation accelerated to 6.8% in April–June 2022 (Q1 2022: 3.4%), chiefly due to stronger increases in prices for food and beverages, and transportation. This, coupled with price developments in Dubai suggests headline inflation in the UAE should have receded in the third quarter.

FocusEconomics Consensus Forecast participants expect consumer prices to grow 1.9% on average in 2022, which is up 0.1 percentage points from last month’s forecast. For 2023, they see inflation averaging 1.7%.