Statistics Centre – Abu Dhabi, issued today its periodic report on the Consumer Price Index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the first 11 months of 2011 and the month of October 2011.
The report analyses the CPI calculations for the periods under review, with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households.
As detailed in SCAD’s monthly CPI report, average consumer prices rose by 1.9 per cent during the first 11 months of 2011, compared with the same period of 2010.
A closer look shows that the “Food and non-alcoholic beverages group”, contributed the largest share (66 per cent) of the rise in the index during the first 11 months of 2011, due to increases in the prices of most of the subgroups making up this group. The report adds that the largest increase within this group was in the prices of the “Coffee, tea and cocoa” subgroups, which advanced by 14.9 per cent each, followed by the “Meat” group (14.3 per cent), “Fruits” (up 9.4 per cent), “Mineral water, soft drinks, fruit and vegetable juices” (up 8.7 per cent), and “Bread and cereals” (up 7.1 per cent).
The next largest contributor to the overall year-on-year increase in the CPI over the first 11 months of 2011 was the “Housing, water, electricity, gas and other fuels” group, which accounted for 34.6 per cent of the overall increase in consumer prices during this period, reflecting a rise of 1.7 per cent in the average prices of this group. The large contribution is explained by the sizable relative weight of this group in the basket making up CPI expenditure groups.
The “Transport” group contributed 26.9 per cent to the year-on-year rise in consumer prices over the period under review, during which it increased by 5.6 per cent. In addition, the “Communications” group advanced by 4.1 per cent and accounted for 13.1 per cent of the rise in consumer prices during the same period.
SCAD’s report also reveals that the key expenditure group that slowed down the rise in consumer prices during the first 11 months of 2011, compared with the same period of 2010 was “Clothing and footwear”, which contributed -69.7 per cent of the overall change in consumer prices over the periods under comparison, as the prices of this group dipped by 14.5 per cent.
It adds, average consumer prices increased by 0.6 per cent in November 2011, compared with November 2010. The most significant individual increase was 8.0 per cent, reported for the “Restaurants and hotels” group, followed by “Alcoholic beverages and tobacco” (up 7.4 per cent) and “Food and non-alcoholic beverages” (up 4.5 per cent). On the other hand, the prices of the “Clothing and footwear” group decreased by 11.3 per cent over the same comparison period.
As for the month-to-month change, average consumer prices edged down 0.1 per cent in November 2011 compared with October 2011. The largest single fall during the aforesaid period was recorded in the prices of the “Food and non-alcoholic beverages” group, which declined by 0.4 per cent.
Detailed by welfare level, consumer prices increased by 3.7 per cent for households of the “bottom” welfare quintile during the first 11 months of 2011 compared with the same period in 2010. The corresponding rise for other welfare levels was 1.3 per cent for households of the top quintile, 2.5 per cent for the middle quintile and 2.9 per cent for the “lower middle” welfare level.
The report notes the consumer prices advanced by 1.4 per cent for households of the “bottom” welfare level in November 2011, compared with November 2010. The corresponding rises were 0.2 per cent for the “top” welfare level and 1.1 per cent for the “middle” welfare level.
A breakdown of the rise in consumer prices in November 2011, compared with October 2011 shows that prices declined 0.4 per cent for the “bottom” welfare level and by 0.1 per cent for the “middle” and the “upper middle” welfare quintiles.
The report also found that during the first 11 months of 2011, compared with the same period of 2010, consumer prices increased by 1.9 per cent for national households. The corresponding rise for other household types was 1.6 per cent for non-national households and 3.4 per cent for collective households.
As SCAD’s report further adds, consumer prices for national households increased by 0.7 per cent in November 2011, compared with November 2010. The corresponding rise for other household types was 0.4 per cent for non-national households and 1.2 per cent for collective households.
A breakdown of the rise recorded in consumer prices in November 2011, compared with October 2011 shows that prices levels retreated in November 2011 by 0.1 per cent for non national households and by 0.45 for collective households.
In preparing its monthly CPI reports, Statistics Centre – Abu Dhabi follows the methodologies adopted internationally in this field, using a broad and highly representative basket of goods and service, to ensure accuracy in the calculation of the index, which is the sole officially authorized source for monitoring changes in prices and inflation in the Emirate of Abu Dhabi.
SCAD has recently developed the computing of the CPI so that it is compiled according to households’ types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure.
Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households.
To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate.
