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Inflation rate in Dubai rose to a record 0.64 per cent in the first half of 2010 compared to the same period of 2009. Food and non-alcoholic beverages went up by 0.45 per cent, according to the Dubai Statistics Centre. Image Credit: Xpress / Karen Dias

Dubai: The inflation rate in Dubai slowed slightly to 0.52 per cent, the Dubai Statistics Centre said on Thursday.

The Consumer Price Index (CPI) reflects a gain of 5.43 per cent in transport costs, 5.22 per cent in the food and non-alcoholic beverages category, 4.47 per cent in the restaurants and hotels group, 3.46 per cent in the furnishings, household equipment and routine household maintenance group, besides a 3.35 per cent rise in terms of health care costs, and a 2.87 per cent increase in education costs.

The miscellaneous goods and services group accounted for a 2.56 per cent increase, while the category comprising alcoholic beverages and tobacco recorded a 1.51 per cent increase in prices.

The communication group accounted for a 0.71 per cent increase in prices, while recreations and culture costs edged up 0.29 per cent.

Relief

On the other hand, the inflation rate for housing, water, electricity, gas, and other fuels group declined by 3.30 per cent, and the clothing and footwear group by 1.81 per cent.

In the food and non-alcoholic beverages segment, the highest increase was noted in the prices of fish and seafood at 13.31 per cent. Fruit prices rose by 8.68 per cent and food products by 8.05 per cent.

Alcoholic beverages and tobacco group saw the inflation rate touch 1.51 per cent due to the increase in prices of tobacco by 1.85 per cent, and prices of alcoholic beverages by 0.56 per cent.

The inflation rate for clothing and footwear as a group decreased by 1.81 per cent. Garments made for the biggest decrease in inflation rate, at 2.45 per cent, followed by clothing materials, at 2.23 per cent.

The segment including housing, water, electricity, gas, and other fuels saw the inflation rate fall 3.30 per cent, helped by rent declines of 5.07 per cent. Materials and services for the maintenance and repair of dwelling fell by 2.95 per cent. Prices of gas however increased by 21.85 per cent.

Home maintenance

The inflation rate for furnishings, household equipment and routine household maintenance rose 3.46 per cent, due to increase in prices of glassware, tableware and household utensils by 8.37 per cent, followed by prices of non-durable household goods by 4.37 per cent. Prices of small tools and miscellaneous accessories also rose by 2.50 per cent.

Inflation in the health category rose 3.35 per cent mainly due to an increase in prices of medical services by 55.36 per cent, prices of hospital services by 19.28 per cent, and cost of other medical products by 0.66 per cent.

Transport costs rise

Inflation in terms of transport costs rose 5.43 per cent with prices of fuels and lubricants for personal transport equipment rising 9.05 per cent, prices of passenger transport by air rising 8.57 per cent, and passenger transport by road gaining 5.12 per cent.

Communication costs rose by 0.71 per cent due to the increase in telephone and telefax service prices by 0.74 per cent.

The recreation and culture group saw the inflation rate rise 0.29 per cent, with prices of toys rising 8.48 per cent, stationery and drawing materials gaining 1.78 per cent, and gardens, plants and flowers costing 1.65 per cent more.

The inflation rate for education rose by 2.87 per cent due to an increase of 35.71 per cent in fees of education not definable by level, followed by an increase in fees of post-secondary non-tertiary education by 6.44 per cent and a 1.63 per cent rise in the fees for secondary education.

Restaurants and hotels saw the inflation rate rise 4.47 per cent as prices of restaurants and cafes rose by 4.49 per cent, and prices of accommodation services gained 0.54 per cent.

The miscellaneous goods and services group added a 2.56 per cent driven by a 19.87 per cent increae in prices of jewellery, clocks and watches, a 5.34 per cent price rise in other personal effects, and 4.19 per cent gain in cost of personal care services.

  • 5.22%: price increase recorded in food category
  • 3.35%: increase on price index for health group
  • -3.30%: inflation rate for housing, utilities, fuel
  • -1.81%: inflation rate for clothing and footwear