Abu Dhabi inflation up 0.7%: Scad

Statistics Center - Abu Dhabi (Scad) issued its monthly report on the consumer price index (CPI) and the inflation rate in Abu Dhabi for the month of February 2012.

The report analyses the CPI calculations for the month under review with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households.

Scad indicated that the average rise in consumer prices for the first two months of 2012 was 0.7 per cent, compared with the same period of 2011.

According to Scad's report, the 'food and non- alcoholic beverages' group, accounted for 92.4 per cent of the percentage point rise in the index, due to increases in the prices of most of the subgroups included in this group.

The highest price increases were in the 'meat' subgroups which each rose by 12.3 per cent, followed by 'coffee, tea and cocoa' 8.4 per cent, 'fish and seafood' 6.9 per cent, 'oils and fats' 6.1 per cent, and 'Bread and cereals' 4.4 per cent.

Scad also explained that the next highest group contributor to the overall year-to-date increase in the CPI over the first two months of 2012 was 'restaurants and hotels' which accounted for 42.8 per cent of the increase in the CPI, while prices for this group increased by 8.3 per cent.

The 'education' group contributed 23.5 per cent to the year-to-date rise in consumer prices, having increased by 4.8 per cent. The 'furnishings, household equipment and routine household maintenance' group contributed 15.6 per cent of the CPI percentage points increase during the first two months of 2012 and increased by 2.2 per cent compared with the same period in 2011.

Scad  asserted that the main group that slowed down the rise in consumer prices during the first two months of 2012 compared with the same period of 2011 was 'clothing and footwear' which contributed a negative 52.7 per cent of the overall change in the CPI index. The average prices of this group decreased by 4.4 per cent.

February 2012 Scad's CPI report added that for February 2012 compared with February 2011, average consumer prices rose by 0.6 per cent. The most significant individual increase came from higher prices for 'restaurants and hotels' which rose by 9.7 per cent, followed by 'alcoholic beverages and tobacco' 7.4 per cent and 'food and non-alcoholic beverages' 2.6 per cent. Over the same period, prices of the 'clothing and footwear' group decreased by 4.4 per cent.

Over the month, that is, for February 2012 compared with January 2012, average consumer prices decreased by 0.1 per cent. The most significant individual decrease came from prices for 'Food and non-alcoholic beverages' which decreased by 1.2 per cent over the month.

Impact of CPI change in February 2012 by household welfare level Scad's report stated that consumer prices for the households of the bottom welfare quintile increased by 0.8 per cent during the first two months of 2012 compared with the same period in 2011.

The corresponding rise for other welfare levels was 0.5 per cent for households of the top quintile and 0.9 per cent for the middle quintile while prices for the bottom middle welfare quintile increased by 1.0 per cent.

Consumer prices for households in the bottom and in the top welfare level increased by 0.5 per cent in February 2012 compared with February 2011. The prices for households in the middle welfare level increased by 0.8 per cent.

Consumer prices decreased in February 2012 compared with January 2012 for all welfare levels. Prices in the bottom welfare level decreased by 0.5 per cent and in the middle welfare levels and the top middle welfare level decreased by 0.1 per cent respectively.

Impact of CPI change in February 2012 by household type Scad further elaborated that during the first two months of 2012, consumer prices for national households increased by 1.0 per cent, 0.4 per cent for non-national households and 0.7 per cent for share households.

Consumer prices for national households increased by 0.9 per cent, in February 2012 compared with February 2011, 0.2 per cent for non-national households and 0.4 per cent for share households.

Compared with January 2012, consumer prices for non-national households decreased by 0.2 per cent and 0.3 per cent for share households.

Scad's CPI report compiled in conformity with the highest technical standards.

In preparing its monthly CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field, using a broad and highly representative basket of goods and service, to ensure accuracy in the calculation of the index, which is the sole officially authorised source for monitoring changes in prices and inflation in Abu Dhabi.

Scad has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare.

As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and share households.

To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate.

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