«Federal Competitiveness and Statistics»: The consumer price index is immune to the rises that swept the global economies

Inflation achieves relative stability, and its rise is below the expectations of international institutions

Noura Ali: “The monetary policies of the government and the (central) formed a barrier that made the state’s markets immune to global inflation waves.”

The Federal Competitiveness and Statistics Center published the data of the consumer price index in the country for the second quarter of 2022.

The center indicated that the inflation rate in the UAE was among the lowest rates in the world during the second quarter of this year, achieving a lower percentage than the expectations of the global monetary and economic institutions concerned in this regard.

The data published by the Center indicated that the inflation rate in the country during the second quarter of this year is still far from the significant rises in inflation that are sweeping most economies around the world.

The data indicated that the consumer price index rose to 106.29 points during the second quarter of this year, compared to 99.55 points in the same quarter of last year, which means a rise in inflation of 6.77% during the second quarter of 2022.

monetary policies

Director of the Methodologies Department at the Federal Competitiveness and Statistics Center, Noura Ali, said in a statement to the center yesterday, "The monetary policies of the UAE government and the Central Bank of the Emirates formed a barrier that made the state's markets immune to the unbridled waves of inflation that hit the economies of the world's countries, keeping inflation growth below Its rates are at the global level, and are lower than the estimates of the competent international and financial organizations around the world.”

She added, "Inflation rates in the UAE have achieved lower values ​​than the expectations of international institutions, for example, the International Monetary Fund's expectations for inflation during 2022 were 8.8%, and the same applies to the expectations of the Arab Monetary Fund, which indicated a rate of 8.5% in Arab exporting countries." The fund considered that inflation in the UAE is stable and within moderate levels, despite the impact of the general level of global prices during 2022 on geopolitical developments in many regions of the world, which negatively pressure on supply chains, in addition to the impact of changes in global oil prices. Raw materials and food commodity prices.

Cart Details

The data of the Federal Competitiveness and Statistics Center clarified the details of the price basket of goods and services that make up the consumer price index, which is based on 2021 prices as a base year;

The housing, water and electricity group, which is the heaviest component in the basket, with a weight of 35.1% of the total volume of the consumer price index basket, its prices declined, achieving a negative growth of -0.4%, while the growth of the furniture, furnishings and household appliances group reached 2.12 %, which constitutes 5.1% of the weight of the basket. The percentages of rise in the education, clothing, and health groups came in at 0.94%, 1.34%, and 3.22%, respectively, while the percentage of increase in communication services, insurance and financial services was equal at 5.04%.

transport group

The data published by the Center indicated that the prices of the transport group, which weighs 12.7% of the total basket, led the rise in inflation after increasing by 31.23% during the second quarter of this year, compared to 22% for the same period last year, as a natural result of the rise in oil prices globally. The prices of the restaurants and hotels group increased by 6.72%, the prices of the food and beverage group increased by 8.98%, and the tobacco group and the miscellaneous goods and services group increased by 4.24%.

improvement and recovery

Bloomberg International, in a report published on the third of last August, stated that the improvement in business conditions in the UAE as a result of the recovery from the pandemic, contributed to a noticeable decrease in price pressures, and also led to business growth and employment expansion, in addition to the measures that The government has taken measures to ensure food security and the continuous availability of goods in sales outlets, which contributed to a large extent in alleviating pressure on consumer price indices in the country.

In addition, the price of the UAE dirham rose as a result of the rise in the US dollar against international currencies, which reflected positively on the decline in the country's imports, and contributed to a large extent in absorbing the impact of global inflation on inflation in the UAE.

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