Inflation in Consumer Price Index in dubai 3.99
Image: shows group of buildings in Dubai
Consumer Price Index considered as a principal base to show inflation indicator, which measure the periodic changes in goods and services prices during a specific period of time. The general increases in prices (Consumer Price Index) measure economic inflation and a direct measurement of purchasing power of money in various financial operations which include goods and services. Inflation is usually calculate monthly and compared with the previous period. It depends on base year, where weights of goods and services calculated according to families' expenditure on these goods and services. 2007 is chosen as a base year by using this year family expenditures and income survey results. Based on this, goods and services have been divided according to Classification of Individual Consumption According to Purpose (COICOP), into 12 main expenditure groups, as the following, Food and Beverages group has a relative importance impact to the consumer basket by 11.08%, whereas, Tobacco group has an effect of 0.24% in the consumer basket, Clothing and Footwear group form 5.52% of consumer basket weight. Moreover, Housing, Water, Electricity, Gas, and other Fuels group considered as the highest group in the relative importance in the consumer basket by 43.70%, Furnishings, Household Equipment and Routine Household Maintenance group form 3.34% of total relative importance in the consumer basket. In addition, Health group has an effect of 1.08% in the consumer basket, the relative importance of Transport group to the consumer basket total is 9.08%, Communication group has a relative importance of 6.00% to the consumer basket. Additionally, Recreation and Culture group form 4.24% of total relative importance in the consumer basket, Education group accounted for 4.09% from the total weight of the consumer basket. Restaurants and Hotels group form 5.48% in the relative importance of the consumer basket, Finally, Miscellaneous Goods and Services group accounted for 6.15% of the total weight of the consumer basket.
Inflation rate of 2015 amounted to 3.99% compared to 2014, due to an increase in the prices of Furnishings, Household Equipment and Routine Household Maintenance group by 7.64%, Housing, Water, Electricity, Gas, and other Fuels group by 7.00%, Tobacco group by 4.67%, Clothing and Footwear group by 4.14%, Education group by 3.20%, Miscellaneous Goods and Services group by 2.94%, Restaurants and Hotels group by 2.26%, Transport group by 1.52%, Communication group by 0.73%, Food and Beverages group by 0.60% and Health group by 0.45%, On the other hand, inflation rate for Recreations and Culture group declined by 0.14%.
Food and Beverages
Food and Beverages group inflation rate amounted to 0.60%, with highest increase in the prices of Food products n.e.c. by 2.93%, followed by an increase in the prices of Meat by 1.77%, then an increase by 1.70% in the prices of Vegetables
Tobacco group inflation rate reached 4.67%, due to an increase in the prices of Tobacco by 6.78%
Clothing and Footwear
Clothing and Footwear group inflation rate reached 4.14%, due to an increase in the prices of Garments by 5.35%, followed by Shoes and other Footwear prices by 2.40%, then the prices of Clothing Materials increased by 1.52%.
Housing, Water, Electricity, Gas, and other Fuels
Housing, Water, Electricity, Gas, and other Fuels group inflation rate amounted to 7.00%, with highest increase in the prices of Rents by 8.56%, then an increase by 0.07% in the prices of Electricity
Furnishings, Household Equipment and Routine Household Maintenance
Furnishings, Household Equipment and Routine Household Maintenance group inflation rate reached 7.64%, due to an increase in the prices of Domestic Services and Household Services by 14.77% due to an increase in labor wages, followed by prices of Small Electric Household Appliances by 11.64%, then an increase in the prices of Major Household Appliances by 0.56%
Health group inflation rate amounted to 0.45%, due to the raise in the prices of Paramedical services by 2.97%, followed by the prices of Other medical products by 2.93%, then an increase in the Hospital services fees by 1.89%.
Transport group inflation rate reached 1.52%. As a result of an increase in the prices of Passenger transport by road by 11.44% after a decision from Roads and Transport Authority on the new tariff for taxi trips within the emirate since December 2014. In addition to that, prices of Fuels and lubricants for personal transport equipment rose by 2.44% after the announcement by the Ministry of Energy regarding deregulation of fuel prices in the UAE since August 2015, then an increase of 1.67% in the prices of Spare parts and accessories for personal transport equipment.
Communication group inflation rate amounted to 0.73%, due to the increase in the prices of Postal Services by 5.62% after the increase in the annual subscription fee of an individual post office box that made by The Emirates Post Group since December 2014, Further, the prices of Telephone and Telefax Services increased by 0.84%.
Recreation and Culture
Recreation and Culture group deflation rate amounted to 0.14%, due to a decrease in the prices of Equipment for the Reception, Recording and Reproduction of Sound and Pictures by 23.94%, followed by Information Processing Equipment prices by 13.16%, then a decrease in the prices of Photographic and Cinematographic Equipment and Optical Instruments by 11.09% as a result of the rapid development of the technology sector.
Education inflation rate has increased by 3.20%, due to an increase by 3.32% in the fees of Secondary education, followed by an increase in the fees of Pre-primary and primary education by 3.16% and by 3.12% the fees of Post-secondary non-tertiary education increased. It is worth to mention that the Consumer price index (CPI) - Education Group inflation measures the changes in tuition fees of schools and Post-secondary non-tertiary level, and it is different from cost of education index (ECI). Where (ECI) measures the operating expenses for schools
Restaurants and Hotels
Restaurants and Hotels group records an inflation of 2.26%, due to an increase in the prices of Restaurants, cafés and the like by 2.26% and the prices of Accommodation services by 1.07%.
Miscellaneous Goods and Services
Miscellaneous Goods and Services group inflation rate reached 2.94%, due to an increase in Other Services n.e.c. prices by 5.71%, followed by Electric Appliances for Personal Care prices by 4.92%, then an increase of 4.03% in the prices of Transport Insurance.