Inflation in United Arab Emirates
United Arab Emirates - Inflation
Consumer prices tumble sharply in January owing to high base effect from VAT introduction
Consumer prices fell 0.12% month-on-month in January, improving from the 0.31% decline recorded in December. The January print came on the back of lower prices for transportation; housing, water, electricity and gas; and clothing and footwear, which were partially offset by rising prices for food and beverages; restaurants and hotels; furniture; recreation and culture; and communications.
In year-on-year terms, consumer prices plunged 2.4% in January, markedly contrasting the 0.3% print registered in December. The sharp decline observed in the month was largely due to a steep base effect, as the government had introduced a 5% Value Added Tax in January 2018, which was progressively absorbed by the economy over the following months.
United Arab Emirates Inflation Forecast
FocusEconomics Consensus Forecast participants expect inflation to average 2.0% in 2019, down 0.1 percentage points from last month’s forecast, and 2.4% in 2020.
United Arab Emirates - Inflation Data
|Inflation Rate (CPI, annual variation in %)||1.1||2.4||4.1||1.6||2.0|
5 years of economic forecasts for more than 30 economic indicators.
United Arab Emirates Inflation Chart
Source: National Bureau of Statistics.
United Arab Emirates Facts
|Exchange Rate||3.67||0.0 %||Mar 11|
|Stock Market||0.3||0.75 %||Mar 11|
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United Arab Emirates: PMI slumps in February on falling employment amid steep price competition; production outlook worsens
March 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 56.3 in January to 53.4 in February, which marked its lowest level since October 2016.
United Arab Emirates: Consumer prices tumble sharply in January owing to high base effect from VAT introduction
March 4, 2019
Consumer prices fell 0.12% month-on-month in January, improving from the 0.31% decline recorded in December.
February 5, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) rose from 54.0 in December, its lowest level since October 2016, to a seven-month high of 56.3 in January.
January 23, 2019
Consumer prices fell 0.31% in December from the previous month, broadly matching November’s 0.30% decline.
January 10, 2019
The Emirates NBD Purchasing Managers’ Index (PMI) fell from 55.8 in November to 54.0 in December, its lowest level since October 2016.