Dubai records highest inflation rate since 2009 in May

Dubai’s consumer inflation rate touched a six-year high in the month of May rising by 4.7 per cent year-on-year, data from Dubai Statistics Centre showed.

Housing and utility costs, which made up for 44 per cent of expenses, rose 7.8 per cent year-on-year while they increased by 0.7 per cent month-on-month.

Food and beverage prices, which accounted for 11 per cent of total expenses, rose by 1.7 per cent year-on-year and 3 per cent month-on-month.

Consumer expenses in the emirate have been rising sharply since 2013 after the economy rebounded sharply following the economic crisis. Subsequently, Dubai’s successful bid to host Expo 2020 also fuelled a development boom, mainly driving up property costs and rents.

In 2014, Dubai’s Roads and Transport Authority hiked the flag-down charges of taxis and the ticket price of the Dubai Metro.

Education costs are also constantly rising in the UAE, with schools and universities undergoing a periodic fee increase.

Dubai is now listed among the top 25 most expensive cities in the world, according to recent survey by consultancy Mercer.

As per the survey, Dubai and Abu Dhabi were ranked the 23rd and 33rd most expensive cities worldwide to live in while they were also the most expensive destinations for expats in the Middle East.

The rankings of the two emirates have shot up significantly from the previous year, indicating the steep growth of living costs. Dubai moved up 44 places from the 67th position last year while Abu Dhabi went up 35 places from its 68th position in the 2014 list compiled by Mercer.