Abu Dhabi’s Inflation Rate Rises 1.3% In 2013

Abu Dhabi’s inflation rate increased by 1.3 per cent year-on-year in 2013 due to a rise in food and housing costs, according to the latest figures released by Statistics Centre – Abu Dhabi (SCAD).

Food and non-alcoholic beverages accounted for the largest rise in the emirate’s consumer price index, rising 25.9 per cent last year. This was mainly contributed by the rising rate of sub-food groups such as vegetables, seafood, fruits and beverages such as tea, coffee and cocoa.

The cost of transportation also rose by 2.8 per cent last year and was the second largest contributor to rising consumer prices in Abu Dhabi.

Education costs rose by 3.3 per cent in 2013 compared to the same period in 2012, SCAD said.

The average consumer prices in December alone rose year-on-year by 2.2 per cent, owing to a rise in the emirate’s food, clothing and housing costs.

Abu Dhabi’s food prices rose 4.6 per cent during the month of December compared to the corresponding period in 2012.

Housing and other utility prices rose 1.5 per cent year-on-year during the month while restaurants and hotels showed an increase of 3.7 per cent, the report said.

Consumer prices in December also showed a month-on-month increase of 0.1 per cent.

Last year, Abu Dhabi scrapped a five per cent rent cap, which led to rents shooting up in the market.

Analysts polled by Reuters in September forecast an average inflation rate in the UAE of 1.5 per cent in 2013 and 2.3 per cent in 2014, up from 0.7 per cent in 2012. The inflation rate in 2012 was the lowest in the country since 1990.