Dubai’s inflation rate decreased to 3.32 per cent in July, down from 3.85 per cent in June, marking the lowest level since the beginning of the year, according to official figures.
This decline led to a slight decrease in Dubai’s Consumer Price Index, which dropped to 111.56 points in July from 111.65 points in June, as per data released by the Dubai Statistics Centre.
In July, the housing, water, electricity, gas, and fuel sector, which is the most heavily weighted component in Dubai’s CPI, experienced a 6.76 per cent price increase.
The inflation rate in Dubai has slightly increased to 6.66 per cent in July, compared to the 6.66 per cent rise reported in June. This reflects a trend where the sector has been a significant contributor to overall inflation throughout the year.
Dubai’s inflation rate has been relatively low in comparison to other major cities in the region. This reflects the government’s proactive measures to manage price stability and sustain economic growth. Despite global inflationary pressures, Dubai’s economy has remained resilient, benefiting from diversified sectors such as tourism, real estate, and trade.
The data shows that the insurance and financial services sector had an 8.62 per cent price increase in July, up from 8.44 per cent in June. This sector has experienced significant price hikes in 2024, reflecting higher costs for financial products and services.
These July figures continue the upward trend, indicating the growing burden on consumers who depend on these services.
On the other hand, the tobacco sector saw a 3.63 per cent decline in July, the same rate of decrease as in June. This makes it one of the few sectors where prices have consistently dropped, providing some relief from broader inflationary pressures.
In July, Dubai’s inflation rate was 3.32 per cent, indicating a general decrease in price pressures in the city. However, there are variations across sectors. For example, food and beverage prices increased by 2.46 per cent, slightly higher than the 2.35 per cent in June, showing ongoing volatility in essential goods. Similarly, prices in the clothing and footwear sector rose by 0.96 per cent in July, compared to a 0.91 per cent increase in June, indicating relatively stable but low inflationary pressures in this category.
In contrast, the recreation, sport, and culture sector experienced a decline, with prices decreasing by 2.42 per cent in July, following a 1.5 per cent increase in June.
Additionally, the information and communication sector also saw price decreases, dropping by 2 per cent in July compared to a slight rise of 0.02 per cent in the previous month.