UAE: Inflation rises in December from November
Latest reading: Consumer prices in Dubai were up 3.0% in annual terms in December, following a 2.7% rise in the previous month.
Relative to the previous month’s figures, there were higher price pressures for food and beverages (+1.2% on a year-on-year basis vs +0.7% in November) and transport (+3.6% vs +0.2% in November). In contrast, price pressures reduced for housing and utilities in December (+5.1% vs +5.3% in November).
Finally, consumer prices in Dubai were up 0.71% in December on a month-on-month basis, following a 0.17% decline in the prior month.
Outlook: Consumer prices in the UAE as a whole are expected to remain moderate in the coming years at close to 2%. Key upside risks to consumer prices include tax measures (with an expected tax reform in 2027) and trade dislocations caused by geopolitical disruptions.