Consumer prices in the United Arab Emirates dropped 2.2 percent year-on-year in July of 2019, following a 1.5 percent fall in the previous month. It was the seventh straight month of deflation and the biggest decrease in consumer prices since March, as prices continued to drop for food & beverages (-2.0 percent vs -1.7 percent in June) and transport (-5.8 percent vs -1.6 percent). Meantime, cost slowed for furniture & household equipment (1.2 percent vs 1.7 percent); communications (0.5 percent vs 0.6 percent) and tobacco (0.6 percent vs 1.6 percent). On the other hand, prices fell less for housing & utilities (-4.9 percent vs -5.3 percent) and textiles, clothing & footwear (-5.5 percent vs -6.3 percent). On a monthly basis, consumer prices went down 0.8 percent, from a flat reading in June. Inflation Rate in the United Arab Emirates averaged 2.02 percent from 1990 until 2019, reaching an all time high of 12.30 percent in December of 2008 and a record low of -2.50 percent in February of 2019.
Inflation Rate in the United Arab Emirates is expected to be -1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in the United Arab Emirates to stand at 3.80 in 12 months time. In the long-term, the United Arab Emirates Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.