Dubai: Dubai’s inflation rate stood at 2.6 per cent in February 2014 year-on-year, the highest level since 2009, according to new figures released by Dubai Statistic Centre released on Sunday.
The increase in Dubai’s inflation is driven by the rise in the prices of housing and utility.
Housing and utility costs, which account for almost 44 per cent of consumer expenses, jumped 4.5 per cent year-on-year and rose 0.6 per cent month-on-month in February, according to results released by Dubai Statistic Centre.
Food and beverage prices, which account for 11 per cent of the basket, increased 3.7 per cent on an annual basis but fell 0.7 per cent from the previous month.
In January this year, Dubai’s inflation rate rose by 2.17 per cent year-on-year as well. The increase was attributed by the increased cost of education, which grew by 3.99 per cent last month, while housing, water, electricity, gas and other fuel costs also rose 3.87 per cent.
Compared to 2013, on a monthly performance, the percentage of inflation rate changed from 2.07 per cent in October to 2.25 in November and to 2.21 per cent in December.
These numbers measure the periodic changes in the general level of consumer prices in a limited period, said Irfan Al Hassani, UAE-based economist.
The increase in the general price levels is considered a measurement of inflation in the UAE economy
Inflation in Dubai, which accounts for 28 per cent of the UAE economy, reached a record high of 12.3 per cent in 2008, a hike attributed to the boom in the real estate sector.
Rents and housing costs have drastically increased in the past month, and this is going to be followed by an increase in the utility, commodities, food, clothes and most of consumer goods, said Al Hassani.
While most of the Dubai’s prices are on an uptrend, rise in the inflation level is expected to accelerate to four per cent this year, as the Ministry of Economy said recently, Al Hassani said.