Dubai’s annual inflation remained steady in June, coming in at 2.37%, unchanged from May, according to the Dubai Statistics Center (pdf). Some components of the basket recorded moderate price growth, while other segments remained in deflation territory.

The breakdown: Prices for housing, water, electricity, gas, and other fuels — the largest component in the inflation basket — rose by 6.62% y-o-y, slightly down from 6.85% y-o-y in May and 7.02% y-o-y in April, continuing a downward trajectory since the beginning of the year. Food and beverages saw a 0.6% y-o-y rise in June, compared to 0.33% y-o-y in the previous month. Furnishing, household equipment and routine household maintenance saw a price growth of 0.14% y-o-y in June, slower than the 0.29% y-o-y increase recorded in May, while restaurants and accommodation services recorded 0.67% y-o-y price growth, compared to 0.48% a month earlier.

Segments seeing deflation: Transport prices, making up just over 9% of the index, fell to -7.37% y-o-y in June from -8.75% y-o-y in May. The information and communication sector dipped to -1.88% y-o-y, compared to -1.78% y-o-y in the previous month.

On a monthly basis, prices grew 0.28% in June, returning to inflation territory, according to the statistics center’s monthly inflation report (pdf). The reading came after May’s prices saw a 0.18% m-o-m fall in what was the second instance of monthly deflation since July 2024.

Dubai’s consumer price index slightly rose to 114.30 points in June, up from 113.98 points in the previous month, according to the Dubai Statistics Center report (pdf).

REMEMBER- The Central Bank of the UAE (CBUAE) slightly lowered in June its inflation forecast for the UAE for 2025 down by a 0.1 percentage point to 1.9, which it attributed to a “continuous downward trend in transportation costs” and “moderating energy prices.” Meanwhile, Emirates NBD anticipates that inflation “should be maintained around current levels through the rest of the year,” the bank said last month.

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