UAE: Dubai inflation comes in at highest level since August in January
Latest reading: Dubai inflation came in at 3.1% in January, up from December’s 2.9%. January’s result marked the highest inflation rate since August. Transport prices fell at a softer pace, likely reflecting the rebound in oil prices seen in the month. Moreover, house prices rose at the joint second-fastest speed on record for the fourth consecutive month, stoked by a booming population. That said, food prices dipped for the first time since August 2021.
Annual average inflation fell to 3.2% in January (December: 3.3%).
Lastly, consumer prices in Dubai fell 0.01% in January over the previous month, swinging from December’s 0.45% rise. January’s result marked the weakest reading since July 2024.
Outlook: In 2025, Dubai inflation should remain higher than nationwide inflation thanks to a booming non-oil economy and rapid population expansion. Nationwide inflation is projected to remain broadly in line with the Gulf average, constrained by government subsidies and the U.S. dollar peg.