UAE Central Bank Revises 2024 Inflation Forecast Downward to 2.3%

UAE, 22 June, 2024 : The Central Bank of the UAE has adjusted its inflation forecast for 2024 to 2.3%, down from its previous estimate of 2.5%. This revision is attributed to slower-than-expected increases in commodity prices, wages, and rents, influenced by the dirham's appreciation against the USD.

Looking ahead to next year, inflation is projected to remain stable at 2.3%, driven mainly by non-tradeable components of the consumer basket.

In Dubai, headline inflation moderated to 3.4% in the first quarter of the year, below the global average. However, it rose to 3.9% in April, driven by significant increases in transport costs, a key component of Dubai’s consumer expenditures.

Housing prices, which constitute a substantial portion of Dubai’s consumer basket, continued to climb, registering a 6.5% annual increase in April. In contrast, inflation in the food and beverage category decreased to 2.3% during the month, down from 3.3% in the first quarter.

The central bank highlighted that inflation rates across other categories of Dubai’s consumer basket either decreased or remained stable in April 2024, with exceptions noted in clothing, footwear, health, recreation, and restaurants/accommodation services.

Source : www.zawya.com