UAE Inflation Rate up 4.2% Y-Y In June
Housing and utility costs saw the biggest rise in June, they are up 10.2%, the UAE statistics show
The CPI (inflation rate) in the UAE rose 4.2% Y-Y in June, but it edged down by 0.3% from last month, according to figures from the National Bureau of Statistics.
Housing and utility costs, which account for 39% of all consumer expenses in the country, rose 10.2% Y-Y, but increased by just 0.8% M-M.
Food and soft drink prices, which make up for nearly 14% of the consumer basket, rose 1.4% Y-Y, and 0.8% from May.
The UAE’s inflation rate reached 4.3% this May while Dubai and Abu Dhabi recorded a 6-year high in consumer prices that month.
The inflation rate rose to reach 5.2% in Abu Dhabi and 4.7% in Dubai during May, official figures revealed.
Consumer expenses in both the Emirates have been rising sharply since Y 2013 after the economy rebounded following the financial crisis.
Dubai’s successful bid to host Expo 2020 also fueled a development boom, indirectly causing an influx of talent to the region. This in turn led to a growth in property costs and rents.
In addition, UAE residents also faced a hike in utility charges with Abu Dhabi increasing power and water tariffs this year. Dubai saw a rise in transportation charges with metro and taxi fares up last year.
Such fee hikes have contributed to driving up living costs in the UAE.
According to a recent survey by consultant Mercer, Dubai and Abu Dhabi were ranked the 23rd and 33rd most expensive cities worldwide to live in while they were also the most expensive destinations for expats in the Middle East.
The rankings of the 2 Emirates have risen significantly from the prior year, indicating the steep growth in living costs.
Dubai moved up 44 places from the 67th position last year while Abu Dhabi went up 35 places from the 68th position in Mercer’s 2014 list.
By Mary Sophia
Paul Ebeling, Editor
HeffX-LTN
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