UAE consumer prices down 2.36%

UAE consumer prices declined during the period from June 2019 through June 2020, pushing the Consumer Price Index (CPI) down by 2.36 per cent, according to recent figures released by the Federal Competitiveness and Statistics Authority.

CPI is an important economic indicator. It provides a measure of changes in prices over time paid by UAE households for a fixed basket of goods and services. It’s an important component in monitoring the levels of inflation in an economy. If there’s inflation when goods and services cost more the CPI will rise. If the CPI declines, that means there’s deflation, or a steady decrease in the prices of goods and services.

The group with the largest annual decrease was the Recreation and Culture with 18.66 pct. Within the Food and Beverages Group, fish and seafood recorded the largest monthly increase of 2.03 per cent. In the meantime, the group with the largest annual increase over this period was Textiles, Clothing and Footwear with 10.70 per cent.

Between May 2020 and June 2020, the UAE’s CPI logged an increase of 0.33 per cent (from 106.90 to 107.25). The group with the largest increase over the same period was the Restaurants and Hotels with 1.27 pct. The expenditure group that recorded the largest monthly decrease was Furniture and Household Goods with 1.02 pct.

From May 2020 to June 2020, Dubai, Sharjah, Um Al Quwain, Ajman, and Fujairah emirates recorded an increase in their CPI, whilst Abu Dhabi and Ras Al Khaimah, recorded a decrease in consumer prices.

Within the Food and beverages group, the Fish and Seafood subgroup recorded the largest increase of 2.03 pct. The Fruit Subgroup recorded the largest monthly decrease of 4.11 per cent.

Dubai Chamber listing : The number of companies listing on Dubai Chamber of Commerce and Industry’s online marketplace for personal protective equipment (PPE) has surged 340 per cent since its launch earlier this year in response to the COVID-19 pandemic.

The Chamber revealed that 66 companies are registered on the Rapid Response Initiative, RRI, marketplace, up from 15 companies in July. RRI is a free-to-use platform connecting UAE companies and healthcare providers with trusted reliable suppliers of PPE products.

New analysis by Dubai Chamber based on data from TradeMap identified China as the largest exporter of medical supplies to the UAE. According to the data, the value of China’s exports of COVID-19 medical supplies to the UAE reached $623.7 million during the March and June 2020 period, marking a year-over-year surge of 357 per cent.

Surgical facemasks accounted for 40 per cent of the total value of medical products imported to the UAE from China, or $247.8 million, followed by $60 million worth of medical gowns (10 per cent) and face shields (9 per cent) valued at $53.8 million.

Products listed on the online PPE marketplace include surgical and reusable facemasks and shields, safety goggles, hand sanitizer, disposable gloves, medical gowns and coveralls, ventilators and thermometers. Dr. Belaid Rettab, Senior Director, Economic Research and Sustainable Business Development Sector at Dubai Chamber, said the exponential growth achieved by the Rapid Response Initiative reflects the rising demand for PPE products in the UAE, as well as digital solutions and services that cater to the changing needs of business in the country.

WAM