Inflation at 1.2 percent over the First 5 Months of 2012 Y-o-Y

Food Accounts for 67.2 percent of the Rise in Consumer Prices

Average consumer prices advanced 1.7 percent in May 2012 compared with May 2011

Statistics Center – Abu Dhabi issued its monthly report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the month of May 2012 and the first five months of 2012. The report analyzes 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.

Consumer prices over the first five months of 2012

As SCAD’s repot finds, the average y-o-y rise in consumer prices for the first five months of 2012 was 1.2 percent. The “Food and non-alcoholic beverages” group accounted for the largest share (67.2 per cent) of the rise in the index, due to increases in the prices of most of the subgroups falling under this group. The largest price increases were in the “Meat” subgroup which advanced by 11.2 per cent, followed by “Fish and seafood” (up 13.5 per cent), “Coffee, tea and cocoa” (up 9.6 per cent), “Oils and fats” (up 6.7 per cent) and “Milk, cheese and eggs” (up 3.0 per cent).

The next largest contributor to the overall increase in the CPI over the first five months of 2012 was the “Restaurants and hotels” group, which accounted for 38.9 per cent of the increase in the CPI as the prices of the group climbed 13.6 percent.

One of the main groups that slowed down the rise in consumer prices during the first five months of 2012 compared with the same period of 2011 was “Housing, water, electricity, gas and other fuels” which contributed a negative 30.4 per cent of the overall change in the CPI index, with the average prices of the group falling by 1.0 per cent during the aforesaid period.

Consumer prices in May/April 2012/2011

According to SCAD’s report, average consumer prices advanced 1.7 percent in May 2012 compared with May 2011. The largest individual increase was recorded in the “Restaurants and hotels” group which rose by 19.1 percent, followed by “Alcoholic beverages and tobacco” (up 10.7 percent) and “Food and non-alcoholic beverages” (up 4.9 percent). On the other hand, May prices for the “Housing, water, electricity, gas and other fuels” group retreated 1.3 percent y-o-y.

Compared with April 2012, average consumer prices increased by 0.2 percent in May 2012, with the “Alcoholic beverages and tobacco” group recording the largest individual rise (0.9 percent) during the aforesaid comparison period.

Consumer prices in May 2012 by welfare level

The report further detailed CPI data by welfare levels, revealing an increase of 1.4 percent in consumer price for households of the bottom and middle welfare quintiles during the first five months of 2012 compared with the same period in 2011. The corresponding rise for the top quintile was 1.1 percent.

A comparison of price levels in May 2012 vs. May 2011 indicates that consumer prices grew by 1.8 per cent for households for the bottom and middle welfare levels, while prices increased by 1.6 per cent for households of the top welfare level.

A breakdown of consumer prices in May 2012 compared with April 2012 indicates an increase 0.5 percent in price levels for households in the bottom welfare quintile. The corresponding rise was 0.1 per cent for households in the top welfare level and 0.3 per cent for households of the middle welfare level.

Consumer prices in May 2012 by household type

SCAD’s report also detailed the CPI changes by household type, revealing a rise of 1.5 percent in consumer prices for national (citizen) and shared households during the first five months of 2012, which also saw prices edge up 0.9 percent for non-national households.

Consumer prices for national households increased by 1.9 per cent in May 2012 compared with May 2011. The corresponding increases were 1.4 percent for non-national households and 2.1 percent for shared households.

Lastly, consumer prices increased by 0.2 percent for national and non-national households in May compared with April 2012. The corresponding rise for shared households was 0.4 percent.