Dubai Statistics Center (DSC): 0.27% Inflation Index Increase in Dubai
Dubai, March 2016
DSC report showed an increase in the monthly inflation index of goods and services in the consumer basket by 0.27% in March 2016, compared to February 2016. This came as a result of the increase in the prices of clothes and footwear by 2.46%, the relative importance of which to the total consumer basket is 5.52%. Also, the prices of goods and services in the group of miscellaneous goods and services showed an increase of 1.62%, as it has a relative importance of 6.15% to the total consumer basket. Also, the price of the food and beverage group increased by 1.21%, as it has a relative importance of 11.08%. The index of residency, water, electricity, gas and fuel group showed an increase of 0.30%. This group is considered the highest in relative importance to the consumer basket, as it holds a relative importance of 43.70%. Also, the entertainment and culture group index increased by 0.06%, as this group holds 4.24% of the relative importance to the consumer basket. The group of furniture, furnishing and home appliances and their repair showed a slight increase by 0.02%. This group represents 3.34% of the total relative importance of the consumer basket. Meanwhile, the price index of the health group and restaurant and hotel group increased equally by 0.01%, as they have a relative importance of 1.08% and 5.48% respectively. However, the transport group index decreased by 2.77%, as it has a relative importance of 9.08% to the consumer basket. The price index of the rest of the groups remained the same in the period of comparison. The relative importance of the other groups to the consumer basket was 0.24% for the tobacco group, 6.00% for the communication group and 4.09% for education group to the total consumer basket.
On the other hand, the annual inflation index of the goods and services in the consumer basket increased by 1.51% in March 2016 compared to the same period of 2015, as the increase in the school fees led to an increase in the education group index by 4.83%, while the index of residency, water, electricity, gas and fuel group showed an increase of 4.06%. Also, the price of the food and beverage group increased by 3.52%, while the price of the goods and services in the group of miscellaneous goods and services showed an increase of 3.29%, and so was the inflation index in the restaurant and hotel group, which increased by 0.44%. Also, the group of furniture, furnishing and home appliances and their repair showed an increase of 0.33% and so was the index of the entertainment and culture group, which increased by 0.27% and the price of the health group, which increased by 0.03%. However, the price index of the transport group decreased by 9.21% and that's of clothes and footwear by 2.71%. Also, the price of tobacco group decreased by 0.94% and that's of the communication group by 0.08.
The inflation rate in the consumer indices in the main expenditure groups are as follows:
Food and Beverage
The inflation index in the goods and services prices, compared to last month in the group of food and beverages increased by 1.21% because of the increase in the price of fish and seafood by 6.92% due to the bad weather conditions resulting in low supply, while the prices of fruits increased by 3.63% and also food unclassified under any other category increased by 1.58%.
On an annual basis, the inflation index of the group increased by 3.52% due to the increase in the price of fish and seafood by 26.60%, while the prices of mineral water, soda and juices increased by 3.30% and the prices of also food unclassified under any other category increased by 3.21%.
Tobacco
The monthly inflation index of the tobacco group was stable, while the annual index of the group decreased by 0.94%. This came as a result of the decrease in the tobacco price by 1.21%.
Clothes and Footwear
The index of the price of clothes and footwear increased by 2.46%, due to the increase in ready-made clothes prices by 3.22% and the prices of shoes and footwear by 1.69%. On the annual basis, the index showed a decrease of 2.71% as a result of the decrease in the prices of ready-made clothes by 3.84% and the price of shoes and footwear by 0.21%.
Residency, water, electricity, gas and fuel
When monitoring the prices of the Residency, water, electricity, gas and fuel group, it was noticed that their monthly inflation index increased by 0.30% as a result of the increase in the price of dry and solid fuels by 0.64%. Also, the rents paid by tenants increased by 0.35%, which comes as part of the increase that Dubai generally witnesses. There was also an increase in the price of goods and services which was reflected on the increase of the annual inflation index of the group by 4.06%. This came as a result of the increase in the rents paid by tenants by 4.84% as part of the increase that Dubai generally witnesses and the increase in the price of dry and solid fuels by 0.78%.
Furniture, furnishing and Home Appliances and their Repair
The price of the goods and services in the furniture, furnishing and home appliances and their repairs slightly increased, resulting in the increase of the inflation index on the monthly basis by 0.02%. This increase is caused by the increase in the prices of non-durable home goods by 0.53% and also basic home appliances by 0.40%.
As regards the annual index, it increased for this group by 0.33% due to the increase in the prices of pots, metal and glass kitchenware and tableware by 6.57%. Also, the prices of the small, diverse accessories (home lighting accessories) increased by 3.14%, while the prices of carpet and floor coverings increased by 2.79%.
Health
It was noticed that the monthly inflation index for the health group increased by 0.01%, due to the increase in the prices of medical products by 0.19%, while on the annual level, it recorded an increase of 0.03% due to the increase in the medical product prices by 1.16%.
Transport
The transport group decreased by 2.77% in the monthly inflation index, due to the decrease in the prices of fuels and oils for transportations by 6.26% and the annual decrease was 6.26% due to the decision of the Ministry of Energy to free the price of fuels in the State.
On an annual basis, the inflation index decreased by 9.21% due to the index's being affected by the decrease in the price of fuels and oils for transportations by 18.28% due to freeing the fuel prices in the State since August 1st, 2015. Also, the prices of motorcycles decreased by 9.38% as well as the price of purchasing personal transportations which decreased by 3.19%, leading to a decrease in the annual inflation index.
Communications
It was noticed that the monthly inflation index for the communications group was stable, while on the annual level, it recorded a decrease of 0.08% due to the decrease in the prices of wired and wireless communication devices by 5.67%, as manufacturers compete to produce the latest trends. Also, the mail service prices decreased by 1.42%.
Entertainment and Culture
The monthly inflation index of the entertainment and culture group slightly increased by 0.06%, due to the increase in the price of stationary and painting items by 0.73%. In the same pattern, the annual inflation index in the group increased by 0.27% due to the increase in the price of cultural services by 3.09%, while the prices of books increased by 0.42%.
Education
The monthly inflation index of the education group was stable and did not witness any change, due to the nature of the school year in Dubai. As regards school fees on an annual basis, it witnessed an increase in the inflation index of the education group by 4.83%, as the private lesson prices witnessed the highest increase by 9.09%. Also, the university tuition fees increased by 6.48% and the school fees for the secondary education increased by 4.36%, leading to the general increase in the group index.
Restaurants and Hotels
The restaurant and hotel group witnessed a slight increase in the monthly inflation index by 0.01%, due to the increase in the hotel accommodation prices by 0.72%, while on the annual basis, the inflation index showed an increase in the group by 0.44% due to the increase in the price of restaurants and cafes by 0.45%.
Miscellaneous Goods and Services
The group of miscellaneous goods and services witnessed an increase in the prices of goods and services in the group, leading to an increase in the monthly inflation index of 1.62% due to the increase in the vehicle insurance prices by 6.46%. Also, the prices of jewelry, accessories and watches increased by 2.28% and the prices of personal care products and appliances increased by 0.08%.
The annual index of the group increased by 3.29%, due to the increase in the vehicle insurance prices by 12.39%, since insurance companies were obliged to pay ambulance service companies since March, 2015, leading to an increase in the price of insurance policies. Also, the prices of electric personal care appliances increased by 8.16% and the prices of personal care products increased by 3.03%, leading to increasing the index to that level.