Abu Dhabi Inflation Grows to 3.4 % Y-o-Y in February

Statistics Center - Abu Dhabi released today a new issue of its monthly report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for February 2016, replacing, with 2014 as the base year. This CPI is used in measuring inflation and represents an important input in conomic and monetary planning.

As the report finds, the inflation rate in consumer prices for the first two months of 2016 was 3.3 percent, compared with the same period of 2015, as shown by the increase in the CPI to 105.6 points during the first two months of 2016, up from 102.2 points for the same period of 2015.

The report shows weight or relative importance and change for each of the twelve main major expenditure groups, which are grouped as per the Classification of Individual Consumption according to Purpose (COICOP), indicating an overall y-o-y change of 3.3 percent over the first two months of 2016.

The 'Housing, water, electricity, gas and other fuels' group accounted for the largest rise in the index during for first two months of 2016 compared with the same period of 2015, contributing 79.5 % points as a result of an increase of 8.2 percent in the prices of this group.

The ‘Food and beverages’ group contributed 5.0 percentage points to the overall increase in the CPI for first two months of 2016 compared with the same period of 2015. The prices of this group increased by 1.4 % over the same period.

The ‘Restaurants and hotels’ group rose by 5.4 %, contributing 6.1 percentage points to the overall y-o-y increase in the CPI for first two months of 2016.

As analysis of price data further reveals, consumer prices advanced by 3.4 % in February 2016 compared with February 2015 as shown by the increase in the CPI from 102.0 points in February 2015 to 105.5 points in February 2016. This increase reflects the net outcome of the rises and falls in the price of the goods and services of the consumer basket during the aforesaid period. Which saw the ‘Housing, water, electricity, gas and other fuels’ record the largest rise (8.2 %), followed by the 'Restaurants and hotels' group (up 6.0 %), ’Miscellaneous goods and services ' (up 3.3 %) and ‘Food and beverages’ (up 1.7 %).

As the report indicates, consumer prices nudged down 0.2 % in February 2016 compared with January 2016. This fall reflects the net outcome of the rises and falls in the price of the goods and services of the consumer basket and during the aforesaid period. The largest contributors to this fall were the ‘Transport’ group (down 1.6 %) and the ‘Food and beverages’ group (down 0.3 %).

A breakdown of the 3.3 % increase in consumer prices during January-February 2016 compared with January-February 2015 by welfare level shows in a rise of 3.5 % in consumer prices for households of the bottom welfare level and 3.3 percent for the middle quintile and the top welfare levels.

The 3.4 % increase in consumer prices during February 2016 compared with February 2015 by welfare level resulted in rises of 3.6 percent in consumer prices for households of the bottom and the middle welfare levels, and 3.4 % for the top welfare level.

Detailed by welfare level, the 0.2 fall in consumer prices during February 2016 compared with January 2016 is reflected in falls of 0.3 percent in consumer prices for households of the bottom welfare level, 0.2 % for the middle welfare level and 0.1 % for the top welfare level.

The 3.3 % rise in consumer prices for the first two months of 2016 compared with the same period of 2015, pushed up consumer prices for citizen households by 3.1 percent, non-citizen households by 3.5 % and share households by 4.1 percent.

The 3.4 % increase in consumer prices during February 2016 compared with February 2015 by household type impacted consumer prices for citizen households by 3.1 %. The corresponding increases were and 3.6 % for non-citizen households and 4.2 % for share households.

Consumer prices in February/January 2016 by household type Detailed by household type, the 0.2 fall in consumer prices during February 2016 compared with January 2016 resulted in falls of 0.1 % in consumer prices for citizen households, 0.2 % for non-citizen households and 0.3 % for share households.

In Abu Dhabi region, the CPI increased by 4.0 % in February 2016, compared with the February 2015, but fell by 0.2 percent in February 2016 compared with January 2016. The largest contributors to this fall were the "Transport" group (down 1.5 %) and the "Food and beverages" group (down 0.8 %).

In Al Ain region, the CPI increased by 2.8 % in February 2016, compared with the February 2015, but fell by 0.1 % in February 2016 compared with January 2016. The largest contributor to this fall was the "Transport" group (down 1.6 %).

In Al Gharbia, region the CPI increased by 2.2 % in February 2016, compared with the February 2015, but fell by 0.3 % in February 2016 compared with January 2016. The largest contributors to this fall were the "Transport" group (down 1.5 %) and the "Food and beverages" group (down 0.9 %).

A break down by region of the 3.3 rise in consumer prices during the first two months of 2016 compared with the same period of 2015, revealed that Abu Dhabi region accounted for 75.1 percent of the overall rise during the period under review, followed by a Al Ain region (21.1% ) and the Al Gharbia region (3.8 %).

Source:WAM