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Arab News, Sat, Nov 25, 2023 | Jumada Al-Uola 10, 1445

​​Dubai’s inflation moderates to 4.27% in October: official data

Emirates: Dubai’s inflation rate slightly eased to 4.27 percent in October, compared to 4.5 percent in the previous year, the official data showed.  

The report from the Dubai Statistics Center highlighted a 4.70 percent annual increase in transport expenses driven by rising petrol prices.
Meanwhile, expenses for insurance and financial services experienced a rise of 8.97 percent in October compared to the same month the previous year.
The report also highlighted a 6.07 percent year-on-year increase in housing, water, electricity, as well as gas and fuel prices.  

Additionally, food and beverage expenses saw a rise of 3.52 percent, while prices for restaurant and hotel services increased by 2.94 percent. 

Official data indicated a 5.78 percent decrease in tobacco product prices in October compared to the previous year. 

Additionally, the report disclosed that the 4.27 percent inflation rate recorded in October is higher compared to the 3.81 percent in September 2023. 

In August, Dubai’s inflation rate was 2.3 percent, while in July and June, it was 1 percent and 2 percent, respectively. 

Emirates NBD’s Senior Economist Jeanne Walters highlighted in an article that the increase in Dubai’s CPI represents the fastest rate of inflation since March. 

She stated: “The move was expected and entirely due to higher transport costs as petrol prices rose in October.”  

The monthly rise in inflation was attributed to a 2.67 percent increase in expenses for restaurants and hotel services.  

Meanwhile, housing, water and electricity prices experienced a 0.57 percent increase in October compared to the previous month. Additionally, gas and fuel prices also saw a similar rate of rise during the same period. 

“Inflation is likely to moderate again in November as petrol prices declined month on month, and we retain our forecast for average CPI at 3.5 percent this year, down from 4.7 percent in 2022,” Walters commented. 

In October, Jihad Azour, the International Monetary Fund’s director for the Middle East and Central Asia region, stated that inflation is gradually coming under control in the region.  

“The good news is inflation is getting under control, but it is peaking this year, and gradually will go down,” Azour told Reuters.  

The IMF anticipates economic growth in the MENA region to accelerate in 2024 after a slowdown in 2023.

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