Cost of living rises in Dubai

The latest inflation figures for Dubai show that housing costs have dropped but prices for food and drink - particularly fresh fruit and vegetables - are rising sharply.

Dubai, United Arab Emirates - November 1, 2010 -- Food prices at Carrefour, Deria City Centre. Duncan Chard for the National

inflation grocery groceries produce fruit  shop shopping shoppers

Shopping baskets in Dubai have taken a hit with the latest inflation figures showing the cost of fruit and vegetables has risen sharply in the emirate.

Overall, the cost of living in Dubai showed a slight increase of 0.61 per cent during the third quarter, held down by a fall in housing costs, according to the latest report from the Dubai Statistics Centre.

However, while housing costs dropped, shopping budgets saw a steady rise, with food and drink, excluding tobacco and alcohol, rising 1.38 per cent. Prices of vegetables soared 9.49 per cent, while fruits increased 6.29 per cent.

Housing costs, which include water, electricity and gas bills, and account for the largest proportion of costs for many UAE residents, saw a decrease of 0.98 per cent.

Education costs also showed a strong rise, increasing 11.12 per cent during the quarter because of tuition fee increases, while communication costs fell 10.56 per cent.