UAE inflation turns positive for the first time in 31 months

Web DeskWeb Editor

13th Oct, 2021. 12:16 pm
UAE inflation turns positive for the first time in 31 months

DUBAI: The UAE’s Consumer Price Index saw a year-on-year increase of 0.6 per cent in August after a 0.02 per cent decline in the previous month, Arab News reported.

This is the first positive rate since January 2019, according to Asharq Business, citing data from the Federal Competitiveness and Statistics Centre.

The annual increase was largely thanks to a 21.8 per cent jump in entertainment and culture services prices, as well as a yearly rise of 1.2 per cent in the cost of educational services.

The prices for food and beverages fell 1.1 per cent, while the index comprising housing, water, electricity and gas prices dropped by 4.2 per cent.

Clothing and footwear costs declined by 6.29 per cent. This was accompanied by a 0.4 per cent month-on-month inflation rise.

Prices of entertainment and culture services helped the monthly increase as it rose by 4.08 per cent.

Transport services also recorded a monthly rise in prices by 1.4 per cent, and prices of food and beverages slightly increased by 0.7 per cent.

On a year-to-date basis, the 2021 annual rate of inflation was still negative at -0.73 per cent in August, according to data compiled by Arab News. This compares to -2.1 per cent, the annual inflation rate in 2020.

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