Your dirham lost almost 4 fils in buying power in Q1
ABU DHABI 30 April 2018: Inflation rate in Abu Dhabi consumer prices for the first quarter of 2018 was 3.9 per cent compared with the same period of 2017.
The increase in CPI was to 112.2 per cent, up from 107.9 per cent during Q1 2017, according to Statistics Centre – Abu Dhabi (Scad). 2014 is the base year.
A comparison of monthly price data reveals an increase of 2.7 per cent in consumer prices in March 2018 compared with March 2017. However, the CPI dropped one per cent in March 2018 compared with the previous month, said Wam.
Scad’s report also presents the contribution of the main expenditure groups to the overall inflation. These 12 groups are categorised according to the International Classification of Individual Consumption by Purpose.
10% Hike in Travel
As the results indicate, consumer inflation during the first quarter of 2018 was driven mainly by the transport group, which increased by 10 per cent, contributing 35.7 per cent of the overall increase in the CPI. A key contributor to the rise in consumer prices during the period under review was the ‘food and beverages’ group, which accounted for 15.7 per cent of the overall increase in the CPI during the first three months of 2018 compared with the same period of 2017, reflecting a 5.3 per cent surge in the group’s prices.
In addition the ‘miscellaneous goods and services’ group contributed 15.8 percent of the overall increase in the CPI for the first quarter of 2018 compared with the same period of the previous year, as the prices of the group increased by 8.8 percent over the same period. Meanwhile, the ‘housing, water, electricity, gas and fuel’ group detracted 26.6 percent from the overall increase in the CPI during the first quarter of 2018, reflecting a three percent fall in house rents during the period under review.
Income Groups
The report went on to say that since the impact of inflation varies with the household’s welfare level, a breakdown of the rise in consumer prices during first quarter of 2018 compared with same period of 2017 indicates an increase of 3.9 percent for households of the bottom welfare level. The corresponding rises for households of the middle and the top welfare levels were 3.6 and 4.1 percent, respectively.
Analysing the overall rise in consumer prices during Q1 2017 by household type, SCAD’s report shows a 4.2 percent rise in consumer prices for citizen households during the first quarter of 2018, compared with same period of 2017. The corresponding rise for non-citizen and share household types was 3.6 percent and 4.4 percent, respectively.
The Abu Dhabi region contributed 52.2 percent of the total 3.9 percent increase in consumer prices observed during the first quarter of 2018 compared with the same period of 2017, while Al Ain and Al Dhafra regions accounted for 40.1 percent and 7.7 percent, respectively, of the total rise in consumer prices observed during Q1 2018 compared with the same period of the previous year.
According to Scad, the CPI is expected to increase by 2.7 percent for the second quarter of 2018, compared with Q2 2017.