Inflation in United Arab Emirates

United Arab Emirates Inflation | Economic News & Forecasts

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

2013  2014  2015  2016  2017  
Inflation Rate (CPI, annual variation in %)1.1  2.4  4.1  1.6  2.0  

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United Arab Emirates Inflation Chart

UAE Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: National Bureau of Statistics.

United Arab Emirates Facts

Exchange Rate3.670.0 %Mar 11
Stock Market0.30.75 %Mar 11

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