In October 2024, Dubai’s annual inflation rate decreased again, reaching its lowest level in 14 months.
According to data published by the Dubai Statistics Centre, a deeper deflation in transportation prices, which dropped by 10% as opposed to 8% in September, was the primary driver of the emirate’s October inflation rate, which reached 2%.
When compared to other major cities in the region, Dubai’s inflation rate has been comparatively low, which is indicative of the government’s proactive efforts to maintain economic growth and manage price stability.
The diversified industries of tourism, real estate, and trade have helped the emirate’s economy stay strong in the face of global inflationary pressures.
The United Arab Emirates Central Bank projects overall inflation for 2024 at 2%, up from 1% in 2023, due to a moderate increase in wages, rents, and commodity prices, taking into account both domestic and international factors.
Similar to September, the data also showed a deflation in the tobacco price category, which dropped to 3.63%.
The information and communication category also showed slower deflation, with an annual decline of 1.92%, as opposed to a decline of 2.05% in September, according to the figures.
In October, prices for recreation, sport, and culture fell 1 point 74% year over year, which was less than the 2 point 66% decline in the previous month.
Additionally, the data showed that prices in the housing, water, electricity, gas, and other fuels sectors increased by 7.16% as opposed to 7.02%t in September. Prices in the insurance and financial services industry increased as well, rising 5.58% in October compared to 5.20% in September.
In October, prices for food and drink, health care, and education all increased. Food and drink increased by 1.85%, health by 1.87%, and education by 2.94%. In comparison, September’s increases were 2.94% for education, 1.88% for health, and 1.81% for food and beverages.