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17-05-23

Dubai's Inflation Slows to 13-Month Low, Driven by Transportation, Food Prices

(MENAFN) Dubai's inflation rate reached its lowest level in 13 months, standing at 3.27 percent in April, as per the latest data from the emirate's statistics authority. This decline can be attributed to decelerating transportation and food prices, leading to a drop in Dubai's Consumer Price Index (CPI), which reached its lowest point since February 2022 when inflation stood at 2.65 percent.

The moderation in price levels aligns with the overall inflation trends observed across the Gulf Cooperation Council (GCC) region and globally. A report released by Kamco Invest, a Kuwait-based investment strategy and research firm, noted a downward trend in the inflation rate for GCC countries in 2023 compared to the previous year.

In April, the Dubai Statistics Center's report highlighted that food and beverage prices increased by 5.78 percent, a decrease from 6.28 percent in March. This contributed to slowing down the overall CPI. Additionally, transportation prices experienced a decline for the second consecutive month, reaching 8.53 percent in April.

On the other hand, the prices of housing, water, electricity, gas, and other fuels continued to surge, marking the 11th consecutive month of growth. These categories hold significant weight in the measurement of Dubai's CPI. Particularly, housing, water, electricity, and gas prices reached a record high of 5.44 percent in April.

The continuous rise in water and electricity prices has resulted in notable financial performance for the Dubai Electricity and Water Authority in the first quarter of this year.

The slowdown in inflation, primarily driven by transportation and food prices, indicates a stabilizing economic environment in Dubai. While certain sectors experience a decline, other sectors like housing and utilities continue to show robust growth. Monitoring inflation trends remains crucial for policymakers and businesses to ensure the sustainability of the emirate's economy and the well-being of its residents.
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