Abu Dhabi CPI inches up in May

abu dhabi — The prices of consumer goods in Abu Dhabi rose 0.2 per cent month-on-month in May, reflecting the net outcome of the rises and falls in the prices of the goods and services of the consumer basket in May, Statistics Centre Abu Dhabi, or Scad, said on Saturday.

The largest increases were seen in food and beverages, which rose 2.8 per cent and the miscellaneous goods and services, which climbed 1.2 per cent.

The CPI calculations for May are compared with the year 2007 fixed as a base year.

In its Article IV consultations on June 4, the International Monetary Fund said that the UAE’s economic activity is expected to moderate with nonhydrocarbon growth projected at 3.4 per cent in 2015 amid lower oil prices and an appreciation of the real effective exchange rate.

The fund said sales prices in the real estate market have stabilised, but increases in rents more than offset the dampening effect of US dollar appreciation on imported prices, pushing up inflation, which is expected to reach 3.8 per cent on average in 2015.

Average consumer prices rose by 1.4 per cent in the first quarter of the year against the last quarter of 2014.

In January this year, Abu Dhabi removed subsidies on water and electricity bills for consumers, which contributed to a surge in inflation.

A breakdown of the 0.2 per cent rise in consumer prices during May 2015 compared with April 2015 by welfare level indicates an increase of 0.5 per cent in consumer prices for households of the bottom welfare quintile, and 0.4 per cent for households of the middle welfare level, Scad said.