Annual inflation in Dubai cooled in July to its lowest level this year, inching down to 3.32% from 3.85% in June, according to figures (pdf) from the Dubai Statistics Center. The lower inflation reading was driven by decreased furnishings and household maintenance, transport, information and communication, recreation, sport, and culture, and restaurants and accommodation services costs.

The breakdown: Prices of housing, water, electricity, gas, and other fuels — the largest component of the basket of goods and services — increased at the highest pace this year to 6.76% during July, compared to 6.66% in June, while food and beverage inflation accelerated to 2.46% from 2.35%.

Month-on-month, Dubai’s inflation slowed to a 0.08% decrease in July, down from a 0.28% increase in June, according to the statistics center’s monthly inflation report (pdf).

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