{"id":109955,"date":"2025-12-03T00:00:00","date_gmt":"2025-12-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/abu-dhabi-inflation-surges-1-5-in-october\/"},"modified":"2025-12-03T00:00:00","modified_gmt":"2025-12-03T00:00:00","slug":"abu-dhabi-inflation-surges-1-5-in-october","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/12\/03\/abu-dhabi-inflation-surges-1-5-in-october\/","title":{"rendered":"Abu Dhabi inflation surges 1.5% in October"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong style=\"background-color: transparent;\">Abu<\/strong><strong style=\"background-color: transparent;\"> D<\/strong><strong style=\"background-color: transparent;\">habi\u2019s <\/strong><strong style=\"background-color: transparent;\">consumer price index soared 1.5% in October<\/strong><span style=\"background-color: transparent;\">, the highest increase since February 2023, following <\/span><a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/12fac37c-abc6-4ca6-800a-abdcc9c03eb8\/abu-dhabi%253cmark%253e-inflation%253c%2Fmark%253e-inches-up-0.2%2525-in-september\" rel=\"noopener\">September\u2019s<\/a><span style=\"background-color: transparent;\"> slight 0.2% uptick, according to <\/span><a target=\"_blank\" href=\"https:\/\/ent.news\/2025\/12\/123.pdf\" rel=\"noopener\">data (pdf)<\/a><span style=\"background-color: transparent;\"> from the Abu Dhabi Statistics Center. On a monthly basis, inflation rose 0.7%, after inching up 0.5% in September, separate <\/span><a target=\"_blank\" href=\"https:\/\/ent.news\/2025\/12\/121.pdf\" rel=\"noopener\">data (pdf)<\/a><span style=\"background-color: transparent;\"> shows.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong style=\"background-color: transparent;\">Prices of ins. and financial services led annual increases in October<\/strong><span style=\"background-color: transparent;\">, climbing 6.6% and mirroring rises in September. This was followed by a 5% uptick in costs across the household equipment and routine household maintenance segment, while housing, water, electricity, gas, and other fuels \u2014 the largest component in the index \u2014 rose 3.2%. Personal care, social protection, and miscellaneous goods went up 2.6%, while transport prices, the second-largest component, jumped 2.4% \u2014 its first increase since June 2024. Restaurants and hotels climbed a notable 2.3%, while tobacco prices (+0.9%), communication (+0.6%), and food and beverage prices (+0.4%) also edged up.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>A few sectors are still in deflation territory on a y-o-y basis<\/strong>, including clothing and footwear, which recorded the most significant dip for the fourth consecutive month (-9.2%), and recreation and culture, down 1.5%.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>On a monthly basis<\/strong>, recreation and culture recorded the highest increase among all categories, rising 3.5%, followed by a 1.1% increase for both restaurants and hotels and transport. Personal care, social protection, and miscellaneous goods and household equipment and routine household maintenance both recorded a 0.9% m-o-m increase. Food and beverages saw a slight 0.1% m-o-m rise, while clothing and footwear was the only category in m-o-m deflation.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Abu Dhabi inflation is still much cooler than in Dub<\/strong><strong>ai<\/strong>, where annual inflation <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/340e589a-c66c-4e73-a03e-5daef5074984\/%253cmark%253edubai%253c%2Fmark%253e%253cmark%253e-inflation%253c%2Fmark%253e-accelerates-at-its-fastest-pace-in-almost-a-year-in-october\" style=\"\" rel=\"noopener\">accelerated<\/a> to 3.36% in October, up from 2.88% in September.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The bigger picture: <\/strong>Back in September, the Central Bank of the UAE <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/89c2ba70-cf56-4076-b3a5-0851113adeb0\/cbuae-lifts-gdp-forecast-this-year-to-4.9%2525-on-higher-oil-production-and-non-oil-momentum\" style=\"\" rel=\"noopener\">lowered<\/a> its inflation forecast for the UAE this year by 0.4 percentage points to 1.5%, which it attributed to <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/fa4cf25d-d54e-4c11-b2ba-847ec69cc905\/dubai%253cmark%253e-inflation%253c%2Fmark%253e-cools-in-august\" style=\"\" rel=\"noopener\">falling food and transport costs<\/a>. This is broadly in line with the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\/news\/story\/845a822d-d288-475c-bf15-e8b0ef5e3e0c\/imf-upgrades-uae%E2%80%99s-growth-forecast-to-4.8%25,-citing-oil-rebound-and-non-oil-strength-%2B-moody%E2%80%99s-affirms-uae,-abu-dhabi%E2%80%99s-aa2-ratings\" style=\"\" rel=\"noopener\">IMF\u2019s revised inflation forecast<\/a> of 1.6% in 2025 \u2014 a significant downgrade from the fund\u2019s earlier estimate of 2.1%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On a monthly basis, inflation saw a 0.7% increase, after having inched up 0.5% in September<\/p>\n","protected":false},"author":1,"featured_media":109956,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1556],"tags":[1360,157,19,7,285],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-109955","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-abu-dhabi","tag-central-bank-of-the-uae","tag-economy","tag-enterpriseam-uae","tag-inflation","wpautop","entry"],"acf":{"mongo_id":"636b003b-80f2-404a-aa2b-bb549a8eedad","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/9\/650.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Abu Dhabi inflation surges 1.5% in October","related_issue":[109948],"teaser":"On a monthly basis, inflation saw a 0.7% increase, after having inched up 0.5% in September","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/12\/.66e46417-ed7a-4343-90d0-1baaf3669fd9.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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