Inflation in Abu Dhabi is forecast to top 3 per cent in the third quarter of this year, according to the Statistics Centre-Abu Dhabi.
Consumer prices in June rose 3.3 per cent, compared with 1.8 per cent for the same month a year earlier, the authority said on Sunday.
In the first six months, the inflation rate reached 3.6 per cent.
The authority didn't give comparative figures for either the third quarter or the first half of 2017.
Prices in the transport sector rose 9.4 per cent in June, accounting for more than 36 per cent of the overall increase in the emirate's consumer price index.
It was followed by clothing and footwear sector, which rose 14.1 per cent and contributed 19.7 per cent to the overall increase in June.
The price of housing, water, electricity, gas and fuel had the steepest decline in June, falling 3.4 per cent.
Consumer prices, which rose to a peak this year of 4.7 per cent in January when the five per cent VAT was implemented, are expected to taper as the levy is absorbed into the economy.
The central bank of the UAE is projecting consumer prices to moderate to 3.5 per cent this year and 2.5 per cent next year.