Inflation rate in Dubai continues to remain high. Consumer price inflation in Dubai hit 2.76% in May, according to Dubai Statistics Centre (DSC). That is 0.9% more than the registered jump in May 2013. Despite that, compared to the year-on-year increase witnessed in April, the one in May was 0.26% lower.
In May alone, CPI (the Consumer Price Index) went up by 0.18%. Unlike in April, when the inflation was mainly boosted by the housing prices in the emirate, in May the leading factor for the increase were education costs. Year-on-year inflation increase in education hit 4.87% and compared to last month prices have remained the same as those witnessed in April. However, they are expected to climb even more after more than 100 schools in Dubai have announced that they will increase their tuition fees.
The year-on-year jump in the category housing and utilities, on the other hand, was estimated at 4.66%. As a result, now they make up nearly 44% of consumers’ monthly budget. This trend is predicted to boost Dubai’s Consumer Price Index over the upcoming months. Only monthly basis, housing and utility costs have increased by 0.4%
All in all, most prices have went up over the last one year, including restaurants and hotels (2.48%), communication (1.49%), household maintenance and equipment (3.31%), miscellaneous goods and services (2.21%), alcoholic beverages and tobacco (2.63%). Some of the few exceptions were prices of non-alcoholic beverages and food which decreased by 1.70% compared to the previous month. Still, they were 3.11% higher than those registered in April 2013. Non-alcoholic beverages and food witnessed an inflation of 2.98%.
Despite that, in some categories, prices decreased. Among them were transport (0.21%), clothing and footwear (2.9%), as well leisure and culture (0.06%).
Inflation is expected to continue to rise in 2014 mainly due to prices of utilities, housing and food in Dubai. It is predicted that the average annual inflation rate in the emirate for 2014 will reach 3% which is 1.69% higher compared to that registered in 2013.
