Arab News, Wed, Mar 20, 2024 | Ramadan 10, 1445
Dubai annual inflation eases to 3.36%
Emirates:
Annual inflation in Dubai experienced a modest decrease in February, marking a
deceleration to 3.36 percent from January’s rate of 3.6 percent, according to
official data.
This downturn is largely attributed to declines in
the costs of transportation, as well as in the recreation, sports, culture, and
tobacco sectors, a report by the Dubai Statistics Center highlighted.
Transportation saw a significant change during the
month, going from -1.03 percent in January to -3.09 in February, a threefold
deceleration.
The food and beverages sector, which holds a
significant 11.6 percent weight in the overall index, also saw a reduction in
its inflation rate, dropping to 3.08 percent from 3.69 percent in January.
This slowdown reflects a broader trend of easing
price pressures in this vital category.
On the other hand, housing and water, as well as
electricity, gas, and other fuels — sectors which hold above 40 percent
influence on the overall index — witnessed a slight increase in their price
growth rate, rising to 6.25 percent from 6.2 percent in January.
This increment, although marginal, indicates
continued cost pressures in some of the core living expenses for residents in
the emirate.
Furthermore, Dubai’s non-oil private sector
maintained its growth momentum in February, with the emirate’s Purchasing
Managers’ Index reaching 58.5, the highest since May 2019, a survey showed.
According to the PMI report by S&P Global, the
significant growth in Dubai’s private sector was driven by an increased volume
of new orders. This surge prompted companies to hire people at the fastest rate
in the last eight years.
In January, Dubai’s PMI stood at 56.6, compared to
57.7 in December and 56.8 in November.
According to S&P Global, any PMI reading above 50
indicates growth in the non-oil sector, while readings below that figure signal
contraction.
David Owen, senior economist at S&P Global Market
Intelligence, said: “The Dubai PMI climbed to 58.5 in February, which is its
joint-strongest reading since 2015 — matching May 2019 — and suggests that the
Dubai non-oil economy is growing rapidly so far this year.”
He added: “The reading signals that the Dubai
non-oil sector is one of the fastest growing worldwide according to global PMI
data.”
The survey revealed that 36 percent of the
respondents saw their output increase since the previous poll period, signaling
the fastest upturn in 18 months.