The Consumer Price Index (inflation) in the UAE exited negative territory in August for the first time in nearly 31 months, due to rising transportation costs that heavily impacted the index. The inflation rate rose by 0.55% year-on-year in August, marking the first positive rate recorded since January 2019, according to data released by the Federal Competitiveness and Statistics Center on Tuesday.
The Consumer Price Index also increased by 0.43% month-on-month in August.
Data from the statistics center showed that the annual inflation was driven by the rise in six expenditure groups, led by transportation services (which make up 14.6% of the consumer spending weight), household equipment and appliances by 1.35%, tobacco by 0.14%, health services by 0.51%, promotion and culture by 21.76%, and education by 1.21%.
On the other hand, the following groups recorded year-on-year declines:
- Housing, water, electricity, and gas: 4.2%
- Food and beverages: 1.12%
- Clothing and footwear: 6.29%
- Communications: 0.17%
- Miscellaneous goods and services: 2.83%
- Restaurants and hotels: 0.38%
Regarding the month-on-month inflation rise, it resulted from an increase in five major groups, led by food and beverages by 0.74%, clothing and footwear by 0.7%, household equipment and appliances by 0.09%, transportation services by 1.37%, and promotion and culture by 4.08%. The tobacco group, health services, and education remained stable.
