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Press Dossier    By Date   20/03/2024 Dubai annual inflation eases to 3.36%

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.

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