UAE inflation retreated from a six-year high in September, as a cut in fuel prices significantly lowered transportation costs.
Figures from the National Bureau of Statistics showed that year-on-year inflation decreased to 4.3 per cent last month. This compares with a 4.9 per cent rise for August, the highest monthly figure since 2009.
The decline was largely explained by a decrease in fuel costs for the month of September, after the UAE’s Ministry of Energy reduced the cost of petrol by about 8 per cent. As a result, transportation costs fell by 4.4 per cent compared with last month, according to the statistics bureau.
However, transportation costs are still up 5.9 per cent compared with last September, according to the statistics bureau, after the government introduced a new method of calculating fuel prices in July.
Housing was the fastest growing category, rising by 8.3 per cent year-on-year.
Education and textiles, clothing and footwear experienced the highest monthly price increases in September, rising by 3.3 and 3.11 per cent respectively.
The release of national inflation figures came shortly after Dubai Statistics Centre announced a similar drop in annual inflation to 3.9 per cent from 4.4 per cent in August, according to Reuters.
Housing and utility costs, which account for nearly 44 per cent of total consumer expenses in the emirate, rose 6.6 per cent year-on-year, even as property prices and rents continue to decline.
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