Dubai Sees Slight Rise in Inflation This September, Driven by Housing and Utility Expenses
Assalamu alaikum dear brothers and sisters, just wanted to share some recent updates about the economic situation in Dubai. In September, the inflation rate in Dubai went up a bit to 2.9% compared to 2.4% in August, mainly because housing and utility costs increased. Housing, utilities, and fuel prices, which make up a large part of the consumer price index, rose by nearly 6% year-on-year due to higher rents for apartments and villas.
On the other hand, transport costs actually dropped slightly by 0.87%, and prices for information and communication went down a tiny bit as well. Clothing and footwear prices increased by 1%, and food and beverage costs saw a small rise too. Other expenses like education, dining out, personal care, and social services also went up during the month.
An economist mentioned that the inflation rise is partly because transport prices are not dragging the numbers down as much as before. Oil prices seem to be stabilizing, though they might go down globally. Rental inflation is starting to ease, so overall inflation is expected to stay modest in Dubai.
The Central Bank shared that inflation in the UAE has calmed down thanks to lower energy and food prices. They lowered their forecast for 2025 inflation to 1.5% and expect a slight increase to 1.8% in 2026.
Dubai's economy is still growing steadily, with a 4% increase in the first quarter of 2025 thanks to growth in sectors like wholesale and retail trade, and real estate. Over 72,000 new homes are expected to be handed over this year, which should help stabilize rents and give families more options.
May Allah bless our community with ease and barakah in our livelihoods. Let's keep making dua for continued growth and stability in our region. Jazakum Allahu khairan for reading!
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