Cost of Living Decreases in Dubai
The overall cost of living in Dubai during the first half of 2012 has decreased slightly as compared to the corresponding period in 2011 while many prices in many different sectors continued to fluctuate, a report issued recently by Dubai Statistics Centre claims.
According to the details, many groups even showed a negative trend as their prices continued to increase, but the overall data suggest that the cost of living in the emirate reduced by 1.5 percent in the first half of 2012.
In comparison to the data obtained for the first half of 2011, the report indicates that prices of food products increased in the first half of 2012.
According to the report, inflationary trend increased by 3.77 percent in food and non-alcoholic beverages. The report notes that the increase was a result of surge in prices of fish. It says that the prices of fish increased by 10 percent in the first half of 2012.
It is also not surprising to see surge in the cost of education. A lot of complaints from the residents have been received regarding unaffordable school fees. Different schools in the emirate charge different fees and the schools that are following the Western system are the most expensive of all.
Moreover, the authorities have also allowed the schools to increase their fees annually if they maintain the set standards throughout the year.
Education sector showed inflation of around 1.81 percent in the first half of 2012. Other sectors that showed inflationary trend include recreation and culture (0.3 percent), health (0.11 percent), alcoholic beverages and tobacco (0.42 percent) restaurant and hotel (0.29 percent) and goods and services group (2.31 percent).
The report also shows that inflation increased by 0.8 percent in the month of June only. It also said that increase in food and transportation costs was the main factor behind the increasing inflation during the month.
Both departments showed an increase of over 6.5 percent during June.
Khaleej Times quoted the report as noting:
“Prices of sand services are deflating in Dubai to record a 1.48 per cent drop in the first half of 2012 compared to the same 2011 period.”
Earlier, the 2012 Worldwide Cost of Living Survey produced by Mercer, a leading global HR consultancy, also claimed that the cost of living in the United Arab Emirates (UAE) and the Middle East region had declined.
The survey noted that the rental prices in the region had fallen, resulting in the decline in the overall cost of living.
On the other hand, many analysts believe that the main reason behind increasing inflation across the Gulf Cooperation Council (GCC) is the rising food prices. The food prices and rental prices play a major role in determining the rate of inflation in the entire region.