UAE: Inflation falls in March as VAT effects start to subside

UAE Inflation

UAE: Inflation falls in March as VAT effects start to subside

Consumer prices fell 0.65% in March from the prior month, a sharper decline from February’s 0.15% month-on-month fall. The decline observed in the month signals a further adjustment of price levels to the introduction of a 5% VAT in early January, as a large number of companies keep compressing their margins in a bid to support demand. According to the Federal Competitiveness and Statistics Authority, the biggest negative contribution to the overall reading in March came from decreases in the prices of food and beverages; housing, water, gas and electricity—which carries a weight of over a third of the index; and transportation, in that order.

Meanwhile, inflation eased from 4.5% in February to 3.4% in March. Annual average inflation inched up from 2.3% in February to 2.4% in March.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen