Dubai’s consumer price index accelerated in October to 4.3% y-o-y, from 3.8% in September, according to data released by the Dubai Statistics Center. The uptick is primarily a result of increased transportation costs, driven by rising petrol prices in October, TradeArabia reports, citing NBD Research Economist Jeanne Walters. Housing and utilities also fueled the accelerating inflation rate, with prices rising 6.07% y-o-y.

What’s going on with fuel? Since the liberalization of the energy market in 2015, the cost of petrol and diesel has closely followed trends in the global oil markets. Global oil supply has been reduced by Saudi Arabia and Russia’s commitment to oil production cuts, Reuters reports.

However, monthly inflation figures slowed down a bit: October put monthly inflation on a downward trend, coming in at 0.29%, down from 0.86% in September, according to Dubai Statistics Center ’s monthly inflation report.

What’s next? Inflation will ease once more when month-on-month petrol price decreases set in, according to Walters, with NBD’s projection that the average consumer price inflation will remain at 3.5% for 2023, a decline from 4.7% in 2022.

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