ABU DHABI 6 November 2020: Residents spending on seven groups of the UAE Consumer Price Index (CPI), increased while five others decreased in September as compared to August 2020. However, the cost of living dropped, possible led by a drop in rents.
According to statistics released by the Federal Competitiveness and Statistics Centre yesterday, the CPI closed down at 105.96 points in September against 106.50 points in August with annual consumer price contraction reached 2.36 per cent.
Groups that saw an annual CPI increase included:
- Food and Beverages
- Textiles, Clothing and Footwear
- Education; and
- Restaurants and Hotels
Those that saw an annual decline were:
- Housing, Water, Electricity and Gas
- Furniture and Household Goods
- Recreational and Culture, and
- Miscellaneous goods and services
Emirates-wise, CPI in the emirate of Fujairah registered the largest percentage of change at 1.25 in September against August 2020, followed by Sharjah at 1.21, said Wam.
The CPI is an important economic indicator that provides a measure of changes in prices over time paid by UAE households for a fixed basket of goods and services. CPI is an important component in monitoring the levels of inflation in the economy.