Dubai Inflation Sees Modest Decrease in February
In a recent report by the Dubai Statistics Center, annual inflation in Dubai experienced a slight decrease in February, dropping to 3.36 percent from January’s rate of 3.6 percent.
Factors Contributing to the Downturn
The decrease in inflation was largely attributed to declines in transportation costs, as well as in the sectors of recreation, sports, culture, and tobacco. Transportation saw a significant change, with the rate dropping from -1.03 percent in January to -3.09 percent in February, marking a threefold deceleration.
Price Changes in Key Sectors
The food and beverages sector also saw a reduction in its inflation rate, falling to 3.08 percent from 3.69 percent in January. On the other hand, housing, water, electricity, gas, and other fuels experienced a slight increase in their price growth rate, rising to 6.25 percent from 6.2 percent in January.
Private Sector Growth Momentum
Dubai’s non-oil private sector maintained its growth momentum in February, with the Purchasing Managers’ Index reaching 58.5, the highest since May 2019. The growth was driven by an increased volume of new orders, prompting companies to hire people at the fastest rate in the last eight years.
Expert Analysis
According to David Owen, senior economist at S&P Global Market Intelligence, the Dubai PMI climbing to 58.5 in February suggests that the Dubai non-oil economy is growing rapidly. The survey revealed that 36 percent of the respondents saw their output increase since the previous poll period, signaling the fastest upturn in 18 months.