Consumer prices up 1.43%

ABU DHABI - The UAE consumer prices rose 1.43 per cent year-on-year during the first half, as rising food prices remained a challenge that pushed the consumer price index, or CPI, on the upside.

By Haseeb Haider

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Published: Wed 20 Jul 2011, 11:04 PM

Last updated: Tue 7 Apr 2015, 4:37 AM

According to the National Bureau of Statistics, or NBS, overall CPI reached 116.10 in June 2011. The index inched up by 0.44 per cent compared to its value at the end of May 2011, and increased by 1.73 per cent when compared to the end of June a year ago.

The International Monetery Fund, or IMF, had forecast that falling property rents would keep the UAE’s inflation rate at around 4.5 per cent in 2011.

The NBS data showed increases were monitored in major expenditure groups, led by furniture and other items that were up 2.34 per cent. Food and soft drinks prices climbed 1.44 per cent.

Miscellaneous goods and services showed a price increase of 0.67 per cent, followed by housing that rose 0.17 per cent.

According to the official data, transportation costs also contributed a little to overall consumer prices as it rose 0.02 per cent in the month.

Textiles, clothing and footwear also showed a rising trend with prices moving up by 0.45 per cent during the period. However, there were noticeable decreases in some areas; communications fell 0.29 per cent, while restaurants and hotels and recreation and culture both showed a price decline of 0.01 per cent.

Consumer prices in Abu Dhabi rose 2.4 per cent year-on-year in the six-month period ending June 30.

Prices increased 0.5 per cent in June from a month ago, Statistics Centre Abu Dhabi said this week.

Emirates NBD in a research note said that Dubai’s inflation will average one per cent this year as higher global food costs will be offset by housing prices.

“Housing is likely to continue to exert downward pressure on CPI, and there is very little evidence of demand-driven inflation in other sectors,” the bank said on July 7.

“Stronger tourism, logistics and trade would drive economic growth in the country from 2.1 per cent last year to 3.3 per cent this year,” the IMF said.

haseeb@khaleejtimes.com



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