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8.09% Inflation in Dubai Rents

Image: DSC
Image: DSC

Dubai Statistics Center: 8.09% Inflation in Dubai Rents

The report issued by Dubai Statistics Center (DSC) showed an increase in the monthly inflation index in the prices of goods and services in the consumer basket by 0.82% in August 2015, compared to July 2015. This was owing to the increase in the transport group prices by 10.40%, as its relative importance is 9.08% of the total consumer basket. Also the prices of the group of furniture, furnishing and home appliances and their repair increased by 0.52%, as this group represents 3.34% of the relative importance of the consumer basket. Also, the prices of the restaurant and hotel group and the group of miscellaneous goods and services increased at the equal rate of 0.34%. Their relative importance is 5.48% and 6.15% respectively. The index of residency, water, electricity, gas and fuel group increased by 0.19%. This group is considered the highest as regards its relative importance in the consumer basket, at 43.70%. Nevertheless, the index of the prices of food and non-alcoholic beverages showed a decrease by 2.41%, as its relevant importance is 11.08% of the total consumer basket. Also, The index in the group of entertainment and culture decreased by 0.03%, where its relevant importance represents 4.24% of the total consumer basket. The price index of the other groups remained the same during the period of comparison. It is worth noting that the relevant importance of the other groups in the consumer basket for alcoholic beverages and tobacco amounted to 0.24%, clothes and footwear 5.52%, health group 1.08%, communications 6% and education 4.09% of the total consumer basket.

On the other hand, the annual inflation index for the group of goods and services in the consumer basket increased by 4.41% in August 2015 compared to the same period in 2014. The transport group came first by 9.39%. The index for the group of furniture, furnishing and home appliances and their repair increased by 7.41% and the index of residency, water, electricity, gas and fuel group increased by 6.65%. Also, the index of clothes and footwear increased by 5.48% and the prices of alcoholic beverages and tobacco increased by 2.85%. The increase in the school fees led to the increase in the education group by 2.22%. The change in the goods and services category occurred in the group of miscellaneous goods and services through an increase of 2.20%. Also the inflation rate in the restaurant and hotel group increased by 1.49%. The prices of the health group increased by 0.14%, where the index for the entertainment and culture group decreased by 0.32%. The price of the communications group also decreased by 0.13% and the prices of food and non-alcoholic beverages showed a decrease by 0.07%.

Food and Non-Alcoholic Beverages:

The effect of the change that occurred in the prices of goods and services than the last month showed in the food and non-alcoholic beverages, in the decrease of the inflation index for the group by 2.41%, due to the decrease in the prices of fish and seafood by 9.02% because of the climate stability. Also, the prices of fruit decreased by 5.46% and also the foods not classified under another category, such as flavors and pickles, by 1.38%.

Also, when studying the index on the annual basis, it was noticed that the inflation rate in the group decreased by 0.07%, due to the decrease in the prices of fish and seafood by 4.66%. Also, the prices of fruit decreased by 1.54% and vegetables by 1.24%.

Alcoholic Beverages and Tobacco:

When studying the index, it was noticed that the monthly inflation index has been stable as regards the alcoholic beverages and tobacco group, while the group's annual index was impacted as it increased by 2.85%, which resulted from the increase in tobacco prices by 4.98%.

Clothes and Footwear:

The monthly inflation index has been stable as regards the clothes and footwear group. As regards the group's annual index, it showed an increase of 5.48% due to the increase in the prices of readymade clothes by 7.22%. Also, the prices of shoes and footwear showed an increase of 2.80% and cloths increased by 2.29%.

Residency, Water, Electricity, Gas and Fuel:

While observing the prices in the residency, water, electricity, gas and fuel group, it was noted that the monthly inflation index increased by 0.19%, which was the result of the increase in the rents paid by tenants by 0.22%, that which forms a part of the general increase witnessed by Dubai. Many goods and services increased as well, leading to an increase in the annual inflation index for the group by 6.65%, which was the result of the increase in the rents paid by tenants by 8.09%, that which forms a part of the general increase witnessed by Dubai.

Furniture and Furnishing, Home Appliances and their Repair:

The prices of goods and services in the group of furniture, furnishing, home appliances and their repair increased, leading to an increase in the monthly inflation index by 0.52%. The index increased in that way due to the increase in the prices of furniture and furnishings by 2.32%. Also, the prices of home services increased by 0.70%, while the prices of the principal home appliances increased by 0.51%. As regards the annual inflation index for the group, it increased by 7.41% due to the increase in the prices of home services by 14.31%, due to some countries stopping to send domestic help, which resulted in a decrease in supply and increase in demand on the nationalities available. Also, the prices of small home electrical appliances increased by 6.54% and home non-durable goods increased by 1.44%.

Health:

The monthly inflation index for the health group was stable, while the annual inflation index of the group increased by 0.14%, due to the increase in the price of medical analyses and radiation by 4.22%. Dentistry services also showed an increase of 1.82% and the hospital service prices increased by 0.80%.

Transport:

The Transport group witnessed an increase in the monthly inflation index by 10.40%, as a result of the increase in the prices of air transport by 34.28% due to the beginning of the season of summer vacations. Also, the prices of fuels and oils for means of transportation increased by 20.62%  after the Ministry of Energy announced the liberation of fuel prices in the UAE. Moreover, the prices of buying personal transportation increased by 1.50% after the termination of Ramadan offers.  In the same manner, the annual inflation index of the group increased by 9.39% as a result of the increase in the prices of fuel and oils for means of transportation by 20.36% due to the liberation of fuel prices as of this month, also the increase in land transportation by 13.83% after the decree the Roads and Transport Authority issued concerning the new tariff for rental cars in trips inside the emirate since December 2014. Also, the increase in the prices of air transport to 13.07%, which led to the increase in the annual inflation index.

Communications:

Although the monthly inflation rate in the communications group remains stable in comparison to last month, the annual inflation index decreased by 0.13%, as the result of the decrease in the prices of telecommunications equipment by 12.79%, so that it competes with telecommunication manufacturers in producing state-of-the-art equipment.

 

Entertainment and Culture:

The entertainment and culture group slightly decreased on the monthly inflation index at 0.03%, due to the decrease in the prices of audio-visual equipment by 2.73%, also in photography equipment and their accessories by 0.18%. The annual inflation index showed a decrease in the prices of the group by 0.32%, due to the decrease in the price of the audio-visual equipment by 18.54% and information processing equipment by 13%. Also, photography equipment and their accessories decreased by 10.67%.

Education:

The monthly inflation index concerning the education group was stable and no changes occurred in it, due to the nature of the school year in Dubai. As regards the annual school fees, no increase occurred in it, resulting in an increase in the annual inflation index in the education group by 2.22%. The increase in the secondary school fees came in first place at 2.59%. Also the school fees of kindergarten and primary schools witnessed an increase of 2.52, while the increase of university tuition by 1.41% also had an impact on this group's inflation.

Restaurants and Hotels:

The prices of goods and services in the group of restaurants and hotels were observed and it was noted that the monthly inflation index increased by 0.34%, due to the increase in the price of restaurants and cafes by 0.34%. In the same manner, the annual inflation index increased to become 1.49%, due to the increase in the price of restaurants and hotels by 1.53%.

Miscellaneous goods and Services:

The group of miscellaneous goods and services witnessed an increase in the prices of goods and services incorporated in the group, which led to an increase in the monthly inflation index to 0.34%, due to the increase in the prices of personal care services by 1.45%. Also, the prices of services not stated under any other categories increased by 0.48%. The prices of vehicle insurance witnessed an increase of 0.42%, while the group's annual inflation index increased to reach 2.20%. This was owing to the increase in the prices of personal care electrical appliances by 7.93%. Also, the prices of services not stated under any other categories increased by 6.12%, while the prices of vehicle insurance increased by 5.57%, after the insurance companies were obliged to pay ambulance service companies since March of this year, which led to an increase in the prices of insurance policies that in turn led to the increase in the index to that extent.

 

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