Abu Dhabi inflation edges lower after fuel price decline

The UAE Government changed its method for calculating the state-subsidised fuel price in July. Warren Little / Getty Images

Inflation in Abu Dhabi fell 0.6 per cent in October compared with previous month on the back of a decline in fuel and food prices.

Statistics Centre Abu Dhabi (Scad) said that transport costs registered a 4.3 per cent decline while food and beverages dropped 2.3 per cent compared with September. Scad however did not provide an annualised inflation rate.

The UAE Government changed its method for calculating the state-subsidised fuel price in July. While petrol prices rose 24 per cent in August, they have continued to fall since. In October the price of Super 98 petrol was lowered to Dh1.90 a litre from Dh2.07 in September, while Special 95 fell to Dh1.79 from Dh1.96 in September.

The cost of living in the capital had been gradually rising this year until October. In August it rose above 6 per cent annually for the first time since 2009.

A report from Scad last month showed that the Consumer Price Index (CPI) – which measures day to day living costs – rose 2.3 per cent in the three months to the end of September compared with the second quarter of this year.

Transport costs increased 5.9 per cent over the period. The cost of food and beverages also increased 4.6 per cent over the three-month period, according to Scad, as retailers appear to have passed on the growing costs of moving food items on to consumers.

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