Abu Dhabi, UAESunday 5 April 2020

Inflation in Abu Dhabi turns negative in 2019

Consumer prices fell 0.8 per cent last year, the first year of deflation since figures were made available in 2005

The largest contributor to the overall decrease in the CPI was the housing, water, electricity, gas and fuel group. Prices also decreased in the transport, clothing and footwear, and food and beverages sectors. Victor Besa / The National
The largest contributor to the overall decrease in the CPI was the housing, water, electricity, gas and fuel group. Prices also decreased in the transport, clothing and footwear, and food and beverages sectors. Victor Besa / The National

Abu Dhabi consumer prices fell in 2018, the first time that inflation turned negative since statistics were made publicly available in 2005, according to the latest Consumer Price Index report from the Statistics Centre Abu Dhabi.

Consumer prices dropped 0.8 per cent last year, with the biggest fall in costs coming in the housing, utilities and fuel group — one of 12 spending groups that make up the index. It fell by 3.7 per cent.

Prices in the transport sector dropped 5.3 per cent, clothing and footwear by 2.3 per cent and food and beverages by 2.1 per cent.

On the other hand, prices in the recreation and culture group increased by a whopping 24.6 per cent year-on-year. Other sectors that saw slight increases were tobacco (3.5 per cent), furnishings and household equipment (2.7 per cent), and restaurants and hotels (1.7 per cent).

Comparison of monthly price data shows a 0.7 per cent fall in the CPI from November to December. The index dropped by 1 per cent in December 2019 compared to December 2018.

Over the preceding 14 years, inflation was at its highest in 2008 at 14.9 per cent and its lowest in 2009, following the global financial crisis, at 0.8 per cent. Since 2010, the CPI rate ranged from 1.1 per cent in 2012 and 4.3 per cent in 2015.

The World Bank projected 1.8 per cent GDP growth for the UAE’s economy in 2019, picking up to 2.6 per cent this year and 3 per cent in 2021 and 2022.

Updated: January 23, 2020 07:08 PM

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