Dubai inflation edges down in July from June peak
Dubai inflation rose by 5.33 per cent on an annual basis in July, lower than its peak in June, as the US-Iran war drives prices of fuel, transport and imported food higher. The consumer price increase last month was slower than the 5.7 per cent annualised rise recorded in June, the highest level this year. Dubai's biggest lender Emirates NBD expects the downtrend to broadly persist in the second…
In July, Dubai's inflation decreased to 5.33 percent annually from its June peak of 5.7 percent, according to the Dubai Data and Statistics Establishment. This decline was attributed to easing price pressures and falling costs in the transport sector. The transport division recorded the highest increase of 11.9 percent, driven by a surge in air passenger transport and rising fuel and lubricant prices.
However, the transport category's annual price growth was slower than June's 18.1 percent, as some costs fell by 3.7 percent. Petrol prices, which have remained unsubsidized in the UAE since 2015, significantly impacted the increase in consumer prices. Although the UAE's inflation has been higher than its Gulf peers due to state-set fuel prices, the decline in July suggests that inflation peaked in mid-year.
Emirates NBD economists expect the downtrend to continue into the second half of the year, with a potential rebound in August if petrol prices rise.
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