Dubai: Dubai’s inflation rate for 2015 was at 3.99 per cent compared to 3.37 in 2014, according to a report from the Dubai Statistics Centre on Sunday.

This was due to a year-on-year increase in the prices of furnishings, household equipment and routine household maintenance by 7.64 per cent.

Prices of housing, water, electricity, gas, and other fuels rose by 7 per cent, tobacco by 4.67 per cent, and clothing and footwear by 4.14 per cent. The cost of education grew by 3.2 per cent, miscellaneous goods and services by 2.94 per cent, restaurants and hotels by 2.26 per cent, transport by 1.52 per cent, communication by 0.73 per cent, food and beverages by 0.6 per cent and health by 0.45 per cent.

However, the inflation rate for the recreations and culture group declined by 0.14 per cent in 2015.

Dubai inflation reached 3.37 per cent in 2014 mainly due to increasing costs of housing, education and food. Inflation for clothing and footwear, recreations and culture, however, declined year-on-year by 0.12 per cent and 0.07 per cent respectively.

Lower growth

Nasser Saidi, founder and president of Nasser Saidi & Associates and former chief economist at Dubai International Financial Centre, said he expects Dubai’s inflation in the current year to be subdued or lower than in 2015 because of lower economic growth, which means spending on locally produced goods and services will slow down.

“Inflation of imported goods will also be subdued or lower than in 2015,” he added.

Meanwhile, the consumer price index dropped 0.04 per cent in December 2015 compared to the previous month. This was a result of a decrease in prices of clothing and footwear by 2.66 per cent, transportation by 0.11 per cent, recreations and culture by 0.07 per cent, and communication by 0.01 per cent.

But the consumer price index rose 3.05 per cent year-on-year in December because of increases in prices of furnishings, household equipment and routine household maintenance by 6.29 per cent, housing, water, electricity, gas, and other fuels by 5.89 per cent, as well as education by 4.83 per cent.