Annual inflation in Dubai cooled in October to its lowest level this year, inching down to 2.38% from 2.5% in September, according to figures (pdf) from the Dubai Statistics Center. The lower inflation reading was driven by decreased clothing and footwear, health, transport, and personal care and social protection 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 7.16% during October, compared to 7.02% in September, while food and beverage inflation accelerated to 1.85% from 1.81%.

Fuel costs were not the biggest culprit this month: The Fuel Price Committee slashed fuel prices for October by about 8%, following a 6% price decrease in September.

Month-on-month, Dubai’s inflation rose 0.17% in October, up from a 0.01% increase in September, according to the statistics center’s monthly inflation report (pdf).

Tags: