Abu Dhabi Inflation at 1.3% Over the First Half of 2012

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 June and the first half 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.

Consumer prices in the first half of 2012 As SCAD's report reveals, the CPI advanced 1.3% in the first half of 2012 compared with the same period in 2011. The single largest rise was recorded in the prices of "Food and non-alcoholic beverages", which accounted for 64.4% 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 surged by10.9 percent, followed by "Fish and seafood" (up 10.3%), "Coffee, tea and cocoa" (up 9.4%), "Oils and fats" (up 6.9%) and "Milk, cheese and eggs" (up 3.0%). The next largest contributor to the overall rise in consumer prices over the first half of 2012 was the "Restaurants and hotels" group, which accounted for 42.0% of the increase in the CPI as the group's prices climbed 15.0%.

The main group that slowed down the rise in consumer prices during the first half of 2012 compared with the same period of 2011 was "Housing, water, electricity, gas and other fuels" which contributed -35.0% of the overall change in the CPI index, with the average prices of the group falling by 1.1% between the periods compared. Consumer prices in June 2012 As SCAD's report finds, average consumer prices increased by 1.4% in June 2012 compared with June2011. The most significant individual increase was in the prices of "Restaurants and hotels" which soared 22.4%, followed by "Alcoholic beverages and tobacco" (up 10.7%) and"Food and non-alcoholic beverages" (up 4.2%). On the other hand, the prices of the "Housing, water, electricity, gas and other fuels" group decreased by 2.0%.

As for month-over-month inflation, average consumer prices increased by 0.2% in June 2012 compared with May 2012. The single largest increase was recorded in the "Restaurants and hotels" group, which advanced 2.8% between the aforesaid comparison periods. Impact of CPI change in June and the first half of 2012 by household welfare levels Detailed by welfare levels, consumer prices climbed 1.5% for households of the "bottom" welfare quintile during the first half of 2012, compared with same period in 2011. The corresponding rise for other welfare levels was 1.4% for households of the middle quintile and 1.1% for the top quintile.

Comparison of monthly price data indicate a rise of 1.9% in consumer prices for households of the bottom welfare level in June 2012 compared with June 2011. Meanwhile prices increased by 1.5% for households the middle welfare level and by 1.3% for the top welfare quintile. Consumer prices increased by 0.5% in June 2012 compared with May 2012 for households in the bottom welfare level. Over the same period, the corresponding rise for households of the top and the middle welfare levels was 0.2% each.

Impact of CPI change in June and the first half of 2012 by household type A breakdown by household type of the change in consumer prices during the first half of 2012, compared with the same period in 2011 shows that prices advanced by: 1.5% for national households,1.0% for non-national households and 1.6% for shared households. Consumer prices for national households increased by 1.5% in June 2012 compared with June 2011. The corresponding rise for other household types was 1.2% for non-national households and 2.3% for shared households. Compared with May 2012, consumer prices increased in June 2012 by 0.1% for national households, 0.2% for non-national households and 0.7% for shared households.