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Consumer Price Index (CPI) Report, UAE

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Key statistics and data for global competitiveness and sustainable development in the UAE.

The data presented in this report were collected from official sources in the UAE.

For more information, please contact us:

@FCSAUAE www.fcsa.gov.ae

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Consumer Price Index (CPI) Report, UAE

April 2020

The Consumer Price Index (CPI) is an important economic indicator. It provides a measure of changes in prices over time paid by UAE households for a fixed basket of goods and services. The CPI is an important component in monitoring the levels of inflation in an economy.

The CPI is produced monthly by FCSA. This publication provides an analysis of the results of the CPI for April 2020 with the base year of 2014.

Change Summary: April 2019 to April 2020

Key Points

 Between April 2019 and April 2020, the UAE’s All items CPI decreased by -1.86%.

 The division with the largest annual decrease was Recreation and culture with -9.28%.

 Within the Food and beverages division, the Fruits class recorded the largest monthly increase of 3.32%.

5.24%

Food and Beverages

-4.13%

Housing, Water, Electricity

-7.85%

Transportation

6.43%

Tobacco

-0.07%

Medical Care

0.82%

Education

12.41%

Textiles, clothing, Footwear

0.04%

Communications

-2.97%

Restaurants and Hotels

-2.90%

Furniture and household goods

-9.28%

Recreation and culture

0.56%

Miscellaneous goods and services

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Change – Annual

Between April 2019 and April 2020, the UAE’s CPI decreased by -1.86% (from 108.82 to 106.80).

Source: Federal Competitiveness and Statistics Authority

The division with the largest increase over this period was Textiles, Clothing and Footwear with 12.41%. The expenditure division that recorded the largest decrease, between April 2019 and April 2020, was Recreation and culture with -9.28%.

Source: Federal Competitiveness and Statistics Authority 106

107 108 109 110 111

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

2019 2020

CPI All Items, UAE, April 2019 to April 2020

-10.0 -5.5 -1.0 3.5 8.0 12.5

Recreation and Culture Transportation Housing, Water, Electricity, Gas Restaurants and Hotels Furniture and Household Goods All Items Medical Care Communications Miscellaneous Goods and Services Education Food and Beverages Tobacco Textiles, Clothing and Footwear

%

CPI - Change by Division, UAE, April 2019 to April 2020

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Change – Month

Between March 2020 and April 2020, the UAE’s CPI recorded a decrease of -0.09% (from 106.90 to 106.80).

The division with the largest increase over the same period was Recreation and culture with 6.75%. The expenditure division that recorded the largest monthly decrease was Transportation with -3.59%.

Source: Federal Competitiveness and Statistics Authority

Change – Emirate

From March 2020 to April 2020, all emirates recorded a decrease in the CPI, excluding Abu Dhabi Emirate, which recorded an increase of 0.91%.

-4.0 -2.0 0.0 2.0 4.0 6.0

Transportation Restaurants and Hotels Furniture and Household Goods Housing, Water, Electricity, Gas All Items Tobacco Medical Care Education Communications Food and Beverages Miscellaneous Goods and Services Textiles, Clothing and Footwear Recreation and Culture

%

CPI - Change by Division, UAE, March 2020 to April 2020

-1.10 -0.60 -0.10 0.40 0.90

UAE Dubai Ras Al Khaimah Umm Al Quwain Ajman Sharjah Fujaireh Abu Dhabi

%

CPI - Change by Emirate, March 2020 to April 2020

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Change – Food and Beverages Group

Within the Food and beverages group, the Fruits class recorded the largest increase of 3.32%. Fish and seafood recorded the largest monthly decrease of -3.41%.

Source: Federal Competitiveness and Statistics Authority

##

#

-3.50 -2.50 -1.50 -0.50 0.50 1.50 2.50 3.50

Fish and seafood Sugar, jam, honey, chocolate and sweets Milk, cheese and eggs Vegetables Oils and fats Breads, cereals and its products Food is filed under another item Tea, coffee and cocoa Mineral water, soft drinks and juices Meat Fruits

%

CPI Food and Beverages Classes - Change %, UAE, March 2020 to April 2020

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Explanatory Notes

 The Household Income and Expenditure Survey (HIES) is the primary data source for updating the weights in the years that it is available. These data use the base year 2014.

 In household expenditure, some items are more important (greater weight) than others.

Price changes for the more important items should have a greater influence on the average rate of price change. The relative importance of the goods and services in the CPI is determined by the relative household expenditure on each product. The below figure shows the relative weights of the CPI divisions.

Glossary

CPI - The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services. Groups (12 divisions, 75 subgroups) categorize the goods and services.

Inflation – An increase in the CPI is inflation.

Housing, Water, Electricity, Gas Transportation Food and Beverages Education Miscellaneous Goods and Services Furniture and Household Goods Communications Restaurants and Hotels Textiles, Clothing and Footwear Recreation and Culture Medical Care Tobacco

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

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