Dubai’s annual inflation rate eased to 2.7 percent in November, down from 3.4 percent in October, reflecting a notable cooling in price pressures across the emirate. The slowdown was primarily driven by a decline in transport costs, which fell 1.9 percent month on month and showed only a marginal 0.2 percent annual increase, compared with a much sharper rise a month earlier.
Transport prices, which account for around 9 percent of Dubai’s consumer price index basket, have historically been a key source of inflation volatility. Their recent moderation played a central role in bringing overall inflation lower during November.
Housing and utilities, the largest component of the inflation basket at over 40 percent, continued to see upward pressure, rising 5.3 percent year on year. Food and beverage prices also edged higher, increasing 0.7 percent compared to the same period last year. In contrast, clothing and footwear prices declined by 0.8 percent on an annual basis.
On average, inflation has remained relatively stable throughout the year, hovering just below 3 percent. Price growth is expected to stay broadly steady going forward, indicating a period of manageable and predictable inflation for Dubai’s economy.
