Dubai’s annual inflation rate held firm at 2.37% in June, unchanged from May, according to data released by the Dubai Statistics Center. While housing and food costs continued to edge higher, significant deflation in transport and communication prices kept overall inflation in check.
Housing, utilities continue upward trend:
The most significant component in the inflation basket — housing, water, electricity, gas, and other fuels — rose by 6.62% y-o-y in June. This marks a slight deceleration from 6.85% in May and 7.02% in April, continuing a downward trend that began earlier in the year.
Food and restaurant prices up modestly:
Food and beverages saw a 0.6% annual increase in June, compared to 0.33% in May. The restaurants and accommodation category also registered a moderate rise, increasing by 0.67% y-o-y, up from 0.48% in the prior month.
Some segments slip into deflation:
The transport segment, which accounts for just over 9% of the index, witnessed prices fall by 7.37% year-over-year (y-o-y) in June, improving slightly from the 8.75% recorded in May. The information and communication category also declined by 1.88% year-over-year (y-o-y), deeper than the 1.78% fall in May.
Monthly inflation back in positive territory:
On a month-on-month basis, Dubai’s consumer prices rose by 0.28% in June, reversing the 0.18% decline in May. The Consumer Price Index (CPI) edged up to 114.30 points, from 113.98 a month earlier.
UAE-wide outlook remains subdued:
The Central Bank of the UAE (CBUAE) revised its 2025 inflation forecast downward by 0.1 percentage points to 1.9% in June, citing the continued decline in transportation costs and moderating energy prices. Meanwhile, Emirates NBD expects inflation to remain at current levels for the remainder of the year.
