Inflation inched up in Dubai in January to its highest level since October 2023, according to figures from the Dubai Statistics Center (pdf). Annual inflation rose to 3.60% y-o-y during the month, up slightly from 3.27% in December.

An increase in food, fuel and housing prices is at the root: Housing, water, electricity, gas, and other fuels — the largest component of the basket of goods and services — increased 6.2% during the month, while food and beverage prices rose 3.69%.

On a monthly basis, Dubai’s inflation slowed to 0.26% in January, down from 0.56% in December, according to the statistics center’s monthly inflation report (pdf).

Looking ahead: On a federal level, the Energy Ministry increased fuel prices by up to 2.1% for the first time in February, while last month’s purchasing managers’ index (PMI) pointed to an increase in material costs and salary adjustments — indicating potential signs of increased inflation down the line.

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