Fuel cuts pull back UAE inflation from six-year high


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UAE inflation retreated from a six-year high in September, as a cut in fuel prices significantly lowered transport costs.

Figures from the National Bureau of Statistics showed that year-on-year inflation decreased to 4.3 per cent last month.

This compares with a 4.9 per cent rise for August, the ­highest monthly figure since 2009.

The decline was largely explained by a decrease in fuel costs for the month of September, after the UAE’s Ministry of Energy reduced the cost of petrol by about 8 per cent.

As a result, transport costs fell by 4.4 per cent compared with last month, according to the statistics bureau.

However, transport costs are still up 5.9 per cent compared with last September, according to the statistics bureau, after the Government introduced a new method of calculating fuel prices in July.

Housing was the fastest-growing category, rising by 8.3 per cent year-on-year.

Education and textiles, clothing and footwear experienced the highest monthly price increases in September, rising by 3.3 and 3.11 per cent, respectively.

The release of national inflation figures came shortly after Dubai Statistics Centre announced a similar drop in annual inflation to 3.9 per cent from 4.4 per cent in August, according to Reuters.

Housing and utility costs, which account for nearly 44 per cent of total consumer expenses in the emirate, rose 6.6 per cent year-on-year, even as property prices and rents continue to decline.

jeverington@thenational.ae

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

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Analysis

Maros Sefcovic is juggling multiple international trade agreement files, but his message was clear when he spoke to The National on Wednesday.

The EU-UAE bilateral trade deal will be finalised soon, he said. It is in everyone’s interests to do so. Both sides want to move quickly and are in alignment. He said the UAE is a very important partner for the EU. It’s full speed ahead - and with some lofty ambitions - on the road to a free trade agreement. 

We also talked about US-EU tariffs. He answered that both sides need to talk more and more often, but he is prepared to defend Europe's position and said diplomacy should be a guiding principle through the current moment. 

 

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