In August, Dubai inflation rate rose 3.53% on year-on-year basis, according to the Dubai Statistics Centre (DSC). This is the highest level recorded over the last half a decade in the emirate.
Last, year-on-year inflation hit over 3.5%, whereas in July its rate was estimated at 3.4%. That is an increase of 0.63% for just one month. The categories tobacco and beverages witnessed the biggest year-on-year price jump – 6.34%.
Utility and housing prices saw the second most impressive price rise – 6.24%. The Dubai Statistics Centre has estimated that, as a result of that both now make up nearly 44% of consumer expenses in the emirate.
Hotels, restaurants and education in Dubai have also become more expensive. The price spike in hotels and restaurants has reached nearly 4.9%, whereas that of education – 4.26%.
According to the Dubai Statistics Centre, inflation trends on a month-on-month level differed from those for year-on-year level. For example, tobacco and beverages prices did not register any change in their piece month-on-month in August. Similar was the case with education prices in the emirate. In comparison, those for utility and housing jumped by 0.43% and food and beverages witnessed a decrease of over 2.5%.
Year-on-year price jumps were also registered in categories like household equipment and routine household maintenance, where inflation reached 3.41% and health, where it was estimated at 2.95%. A price jump of 2.47% was witnessed in the communication category and consumer expenses on miscellaneous good and services have increased to 2.04%. In addition, Dubai consumers now spend nearly 1.8% more on food and beverages and 1.57% more on transport.
Only consumer expenses for culture and clothing and footwear dropped by 0.18% and 3.08%, respectively.
The Dubai Statistics Centre also reported that, during H1 2014, Dubai annual inflation rate hit 2.74%, compared to 1.6% for the same period in 2013.
