Abu Dhabi gets more expensive in Jan-Feb

Abu Dhabi's Consumer Price Index (CPI) increased by 2.6 per cent in February 2014, compared with the same period of 2013, as shown by the increase in the CPI from 123.2 points in February 2013 to 126.3 points in February 2014, Abu Dhabi Statistics Centre (SCAD) monthly data showed.

 Abu Dhabi's inflation rate in consumer prices for the first two months of 2014 was 2.3 per cent, compared with the same period of 2013, as shown by the increase in the Consumer Price Index (CPI) to 126.2 points during the first two months of 2014, up from 123.3 points during the same period of 2013, the report said.

This report provides an analysis of the results of the CPI for the month of February 2014 with the base year 2007.

An overall rise of 2.3 per cent in consumer prices during the first two months of 2014 compared with the same period in 2013 has led to an increase of 2.1 per cent in consumer prices for households of the bottom welfare quintile over this period of comparison. As for the other welfare levels, consumer prices grew by 2.4 per cent for the middle and 2.2 per cent for the top welfare quintile.

The rise in consumer prices for the first two months of 2014 compared with the same period in 2013, pushed up consumer prices for citizen by 2.4 per cent while the non-citizen and share households increased by 2.3 per cent.

The rise in consumer prices for the first two months 2014 compared with the same period in 2013, pushed up consumer prices by region for Abu Dhabi region by 2.1 per cent, Al Ain region and Al Gharbia by 2.3 per cent

"Food and non-alcoholic beverages" group accounted for the largest rise in the index during the first two months 2014 compared with the same period of 2013, contributing 29.7 per cent to the change.

The rises in the "Food and non-alcoholic beverages" group came as a result of increases in the prices of most subgroups included in this group.

The prices of the "Fish and seafood" subgroups rose by 21.5 per cent, "Vegetables" by 11.4 per cent, "Coffee, tea and cocoa" by 8.4 per cent and "Food products" by 5.6 per cent.

The second highest contributor to the overall increase in the CPI over the first two months of 2014 was the "Housing, water, electricity, gas and other fuels" group with a 25.0 per cent contribution to the rise in consumer prices for the periods compared, while its prices increased by 1.5 per cent.

The "Clothing and footwear" group, contributed for 13.6 per cent of the increase to CPI over the comparison period. This contribution resulted from an increase of 4.0 per cent in the prices of this group

The prices of "Restaurants and hotels" rose by 5.1 per cent during the first two months of 2014 compared with the same period of 2013. This group contributed 9.4 per cent of the total increase achieved by all groups.

The "Furnishings, household equipment" group accounted for 8.9 per cent of the overall increase occurring during the first two months of 2014 compared with the same period of 2013. This contribution resulted from an increase of 4.2 per cent in the prices of this group.

Among the main groups that slowed down the rise in consumer prices during the first two months of 2014 compared with the same period of 2013, was the "Communication" group, which contributed -0.6 per cent. The prices of this group decreased by 0.2 per cent.
 
The average consumer prices increased by 2.6 per cent in February 2014 compared with February 2013, with the CPI at 126.3 points in February 2014, up from 123.2 points in February 2013. This increase in prices is due to the net movement (increases and decreases) of consumer prices during these months.

The most significant groups, which experienced increases in prices during February 2014 compared with February 2013, were the groups of "Restaurants and hotels" by 6.6 per cent, "Miscellaneous goods and services" by 4.5 per cent ,"Clothing and footwear" by 4.2 per cent, and "Food and non-alcoholic beverages", "which increased by 4.1 per cent, Meanwhile the prices for the "Communication" group decreased by 0.2 per cent over the period.

The average consumer prices increased by 0.2 per cent in February 2014 compared with January 2014. This overall increase in prices between the two months reflects the net movement (increases and decreases) of consumer prices during the periods compared.
 
The most significant groups, which experienced increases in prices during February 2014 compared with January 2014, were the "Miscellaneous goods and services" which increased by 4.0 per cent.
 
Inflation by household welfare level

Comparing the average CPI by household welfare level for the first two months of 2014 with the same period of 2013.

The rise of 2.3 per cent in consumer prices during the first two months of 2014 compared with the same period in 2013, resulted in an increase of 2.1 per cent in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.4 per cent for the middle quintile and 2.2 per cent for the top quintile.

The rise in consumer prices in February 2014 by 2.6 per cent compared with February 2013 caused a rise in consumer prices for households in the bottom welfare quintile of 1.9 per cent, while prices increased for households in the middle quintile by 2.7 per cent, and the top welfare quintile by 2.6 per cent.

In February 2014, consumer prices increased by 0.2 per cent compared with January 2014. This caused increases of 0.2 per cent in consumer prices for households in the middle quintile and 0.4 per cent in the top welfare quintile.

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