Abu Dhabi's cost of living steady despite fallout from geopolitical conflict
Inflation in Abu Dhabi stood at 1.52 per cent in September, with key components of its consumer price index diverging during the month as the economy navigated through the implications of the geopolitical conflict. The UAE capital's consumer price index for September stood at 108.32, which was also a 0.73 per cent growth from the previous month, largely tugged by a 5.84 per cent growth in the…
Abu Dhabi's cost of living remained steady in September, defying the disruptions caused by a geopolitical conflict. Inflation in the UAE capital was recorded at 1.52 per cent for the month, with the consumer price index (CPI) rising by 0.73 per cent compared to the previous month. The recreation and culture sector saw the highest growth, expanding by 5.84 per cent, contributing to the overall increase.
However, housing costs experienced a decline of nearly 0.6 per cent month-on-month, followed by a 4.5 per cent annual growth. Food and beverages, as well as transport, saw a 3 per cent and 2.03 per cent increase respectively, month-on-month, but showed a decrease of about 3.3 per cent and 1 per cent annually. Abu Dhabi's inflation rate remains lower than its Gulf peers and the wider region.
In contrast, Dubai's inflation eased slightly in September, with the overall rate standing at 5.03 per cent annually, down from previous months. These figures come amid global market scrutiny following US President Donald Trump's suggestion that the Iran conflict might end soon. Meanwhile, US consumer prices rose by 0.4 per cent in October, slightly above expectations.
The Federal Reserve is closely monitoring the situation, as elevated inflation could influence their decision on interest rates at the upcoming December meeting.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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