Heavy costs of transportation and food in Dubai / Dubai inflation reached the highest level in the last 6 years

According to the International Economic Group of Fars News Agency, Bloomberg news agency stated in a report that consumer prices in the Emirate of Dubai are increasing at a faster rate and are approaching the levels of inflation in Europe, emphasizing: This proves that the Persian Gulf countries are not immune to The global wave of inflation.

This news agency reported: Inflation in Dubai has been negative for the past three years, but last July (July and August) it reached 7.1% annually, which is the fastest rate since 2016.

According to the Dubai Statistics Center, high costs of transportation, entertainment, food and beverages were among the biggest factors that led to this increase in the inflation rate.

Bloomberg wrote: The inflation rate in Dubai was negative until last October, but then turned positive, which means that the oil-rich region of the Persian Gulf is not immune to the wave of inflation that affects a large part of the world.

According to this report, the wave of global inflation prompted a number of Gulf governments, including the United Arab Emirates government, to support low-income citizens and stockpile basic goods.

The global increase in commodity prices has also prompted companies in Dubai to pass on increased costs to consumers.

Fuel prices in the UAE, which are set at market cost, have risen by around 80 percent since the start of the year, while other countries in the region subsidize fuel to varying degrees.

The UAE government has imposed restrictions on price increases for essential items, but food and drink prices continue to rise unabated.

Food and drink prices in Dubai rose 8.8 percent year-on-year in July, while house prices rose 0.9 percent as the emirate’s real estate market emerged from a multi-year slump.

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