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Dubai Statistics Center (DSC): 0.66% Inflation Index Increase in Dubai

​Image : Food commodities

​Image : Food commodities

DSC report showed an increase in the monthly inflation index of goods and services in the consumer basket by 0.66% in April 2016, compared to March 2016. This came as a result of the increase in the prices of the transport group by 3.98%, the relative importance of which to the total consumer basket is 9.08%. Also, increase in the school tuition fees led to an increase in the index of the education group by 2.30%, the relative importance of which to the total consumer basket is 4.09%. Also, the price of the food and beverage group increased by 0.61%, as it has a relative importance of 11.08%. The index of residency, water, electricity, gas and fuel group showed an increase of 0.26%. This group is considered the highest in relative importance to the consumer basket, as it holds a relative importance of 43.70%. Nevertheless, the group of furniture, furnishing and home appliances and their repair showed a slight decrease by 0.13%. This group represents 3.34% of the total relative importance of the consumer basket. Also, The prices of both the groups of communications and group of culture and entertainment decreased equally by 0,.08% for each, as their relative importance to the consumer basket is 6.00% and 4,24% respectively. Also, the group of restaurant and hotel decreased by 0.05%, as they have a relative importance of 5.48%. Moreover, the prices of goods and services in the group of miscellaneous goods and services showed a slight decrease of 0.04%, as it has a relative importance of 6.15% to the consumer basket. However, 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, 5.52% for the clothes and footwear group and 1.08% for the health 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 1.94% in April 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 6.74%, while the index the food and beverage group increased by 4.08% and that's of residency, water, electricity, gas and fuel group showed an increase of 3.99%. Also, the price of the goods and services in the group of miscellaneous goods and services showed an increase of 1.88%,  and so was the inflation index in the restaurant and hotel group, which increased by 0.43%. Also, the price of tobacco group showed an increase of 0.26% and that's of the entertainment and culture group increased by 0.18%. Moreover, the group of furniture, furnishing and home appliances and their repair increased by 0.17% and the price of the health group increased by 0.03%. However, the price index of the transport group decreased by 5.39% and that's of clothes and footwear by 2.71%. Also, that's of the communication group decreased by 0.15%. Table No. 1 shows the inflation and indices of consumer prices and figure No. 1 shows the monthly and annual inflation indices in consumer prices.

Table 1: Inflation and indices of consumer prices – April 2016

100= 2007

  • The monthly inflation is the change in the price index of April 2016 compared to March 2016, while the annual inflation is the change in the price index of April 2016 compared to April 2015.

 

Figure No. 1: the monthly and annual inflation indices in consumer prices – April 2016

 

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 0.61% because of the increase in the price of vegetables by 6.74%, while the prices of fruits increased by 4.74% and also oils and fats increased by 0.22%.

On an annual basis, the inflation index of the group increased by 4.08% due to the increase in the price of fish and seafood by 23.91%, while the prices of vegetables increased by 8.66% and the prices of mineral water, soda and juices increased by 1.62%.

Tobacco

The monthly inflation index of the tobacco group was stable, while the annual index of the group increased by 0.26%. This came as a result of the increase in tobacco price by 0.32%.

Clothes and Footwear

The monthly index of the price of clothes and footwear was stable. 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 0.26% as a result of the increase in the rents paid by tenants which increased by 0.30%, 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 3.99%. This came as a result of the increase in the rents paid by tenants by 4.76% as part of the increase that Dubai generally witnesses and the increase in the price of dry and solid fuels by 0.14%.

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 decreased, resulting in the decrease of the inflation index on the monthly basis by 0.13%. This decrease is caused by the decrease in the prices of basic home appliances by 2.18% and small electric home appliances by 1.14%, while the non-durable home goods decreased by 0.21%.

As regards the annual index, it increased for this group by 0.17% due to the increase in the prices of pots, metal and glass kitchenware and tableware by 6.30%. Also, the prices of carpet and floor coverings increased by 2.79, while the prices of the small, diverse accessories (home lighting accessories) increased by 1.75%.

Health

It was noticed that the monthly inflation index for the health group was stable, 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 increased by 3.98% in the monthly inflation index, due to the increase in the prices of fuels and oils for transportations by 9.17% due to the decision of the Ministry of Energy to free the price of fuels in the State, while the other costs concerning means of transportation increased by 0.27%.

On an annual basis, the inflation index decreased to 5.39% due to the index's being affected by the decrease in the price of fuels and oils for transportations by 10.79% due to freeing the fuel prices in the State since August 1st, 2015. Also, the prices of motorcycles decreased by 5.91% as well as the price of purchasing personal means of transportation, which decreased by 1.37%, leading to a decrease in the annual inflation index.

Communications

The monthly inflation index for the communications group decreased by 0.08%, due to the decrease in the in the prices of wired and wireless communication devices by 7.66%, also on the annual level, it recorded a decrease of 0.15% due to the decrease in the prices of wired and wireless communication devices by 12.90%, as manufacturers compete to produce the latest trends. Also, the mail service prices decreased by 0.40%.

Entertainment and Culture

The monthly inflation index of the entertainment and culture group decreased by 0.08%, due to the decrease in the price of data processing devices by 3.39%. Also, stationary and painting items decreased by 0.57% and the prices of photocopying machines and its supplies decreased by 0.33%. On the other hand, the annual inflation index in the group increased to 0.18% 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 increased by 2.30% due to the increase of the Indian and Pakistani school fees, as their academic year starts in April. The school fees of kindergarten and elementary school increased by 3.24% and the secondary education fees increased by the close percentage of 3.08%. As regards school fees on an annual basis, it witnessed an increase that led to an increase in the inflation index of the education group by 6.74%, as the private lesson prices witnessed the highest increase by 9.09%. Also, the school fees for the secondary education increased by 6.91% and The school fees of kindergarten and elementary school increased by 6.68%, leading to the general increase in the group index.

Restaurants and Hotels

The restaurant and hotel group witnessed a slight decrease in the monthly inflation index by 0.05%, due to the decrease in the hotel accommodation prices by 12.54%, while on the annual basis, the inflation index showed an increase in the group by 0.43% 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 a decrease in the prices of goods and services in the group, leading to a decrease in the monthly inflation index to 0.04%, due to the decrease in the prices of goods not falling under any other category by  0.36%, while the prices of jewelry, accessories and watches decreased by 0.17%.

 

The annual index of the group increased by 1.88%, due to the increase in personal care products by 8.16%, also the vehicle insurance prices increased by 6.90% due to insurance companies having 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 3.03%, leading to increasing the index to that level.

 

 

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