Abu Dhabi Inflation at 0.9 Percent in Q1 2012

Statistics Center - Abu Dhabi (SCAD) issued its periodic report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the month of March and the first quarter of 2012. The report analyzes the CPI calculations for the periods under review, with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households. As SCAD's report reveals, average consumer prices edged up 0.9 per cent in Q1 2012 compared with Q1 2011. The single largest rise was observed in the prices of "Food and non-alcoholic beverages", which accounted for 84.4 per cent of the rise in the index, due to increases in the prices of most of the subgroups included in this group. The largest price increase was in the "Meat" subgroup, which advanced by 12.1 per cent, followed by "Fish and seafood" (up 10.7 per cent), "Coffee, tea and cocoa" (up 10.0 per cent), "Oils and fats" (up 6.3 per cent) and "Bread and cereals" (up 4.3 per cent). The next largest contributor to the overall rise in consumer prices over the first quarter of 2012 was the "Restaurants and hotels" group, which accounted for 40 per cent of the increase in the CPI as the group's prices climbed 10.0 per cent.

The main group that slowed down the rise in consumer prices during the first quarter of 2012 compared with the same period of 2011 was "Housing, water, electricity, gas and other fuels" which contributed - 32.4 per cent of the overall change in the CPI index. The average prices of this group decreased by 0.7 per cent. "Clothing and footwear" which contributed -25.7 per cent of the overall change in the CPI index as the average prices of the group retreated by 2.8 per cent between the periods compared. On the hand, the CPI retreated 0.4 percent during the first quarter of 2012 compared with Q4 2011, reflecting a downward change in the prices of "Food and non-alcoholic beverages", which decreased by 1.9 percent between Q4 2011 and Q1 2012. As SCAD's report finds, average consumer prices increased by 1.3 per cent in March 2012 compared with March 2011. The most significant individual increase was in the prices of "Restaurants and hotels" which climbed 13.4 per cent, followed by "Alcoholic beverages and tobacco" (up 9.5 per cent) and "Food and non-alcoholic beverages" (up 5.6 per cent). Over the same period, the prices of the "Housing, water, electricity, gas and other fuels" group decreased by 1.3 per cent. As for month-on-month inflation, average consumer prices increased by 0.3 per cent in March 2012 compared with February 2012. The single largest increase was recorded in the "Restaurants and hotels" group, which advanced 3.4 per cent, followed by "Clothing and footwear" (up 2.3 per cent) and "Alcoholic beverages and tobacco" (up 1.9 per cent).

Detailed by welfare levels, consumer prices climbed 1.0 percent for households of the "bottom" welfare quintile during the first three months of 2012, compared with same period in 2011. The corresponding rise for other welfare levels was 0.7 per cent for households of the top quintile and 1.1 per cent for the middle quintile, while prices for the lower middle welfare quintile increased by 1.2 per cent. Comparison of monthly price data show that consumer prices for households in the bottom welfare quintile increased by 1.3 per cent in March 2012 compared with March 2011. Meanwhile prices increased by 1.1 per cent for households the top welfare level and by 1.5 per cent for the middle welfare level. Consumer prices increased in March 2012 compared with February 2012 for all welfare levels, growing by 0.2 per cent for the bottom and the top welfare levels and by 0.3 per cent for the middle welfare level. A breakdown of the change in consumer prices during Q1 2012, compared with Q1 2011 by household type shows that advanced by: 1.1 percent for national households 0.6 per cent for non-national households and 0.9 per cent for shared households. Consumer prices for national households increased for all household types in March 2012 compared with March 2011, the rise being 1.5 per cent national households, 1.0 per cent for non-national households and 1.3 per cent for shared households. Compared with February 2012, consumer prices increased by 0.3 per cent for national and non-national households, and by 0.1 per cent for shared households.