{"id":111686,"date":"2026-01-20T00:00:00","date_gmt":"2026-01-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/?p=111686"},"modified":"2026-01-20T03:30:35","modified_gmt":"2026-01-20T03:30:35","slug":"dubais-inflation-accelerates-in-december-on-higher-transport-and-food-costs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2026\/01\/20\/dubais-inflation-accelerates-in-december-on-higher-transport-and-food-costs\/","title":{"rendered":"Dubai\u2019s inflation accelerates in December on higher transport and food costs"},"content":{"rendered":"<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Dubai\u2019s annual inflatio<\/strong><strong>n rate accelerated to 2.99% in December 2025<\/strong>, up from 2.73% in November, primarily driven by higher transportation and food costs, according to the latest Dubai Statistics Center <a href=\"https:\/\/ent.news\/2026\/1\/714.pdf\" target=\"_blank\" rel=\"noopener\">data<\/a><a href=\"https:\/\/ent.news\/2026\/1\/714.pdf\" target=\"_blank\" rel=\"noopener\">(pdf)<\/a>. This year-end acceleration highlights the sticky nature of Dubai\u2019s primary inflationary engines: housing, logistics, and seasonal demand.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Consumer prices surged 0.7% on a monthly basis<\/strong>, completely reversing November\u2019s brief 0.17% dip, according to the Statistics Center\u2019s <a href=\"https:\/\/www.dsc.gov.ae\/Report\/Monthly%20Percentage%20Change%202025-%20base2021.pdf\" target=\"_blank\" rel=\"noopener\">monthly inflation report (pdf)<\/a>.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Our take:<\/strong> Dubai\u2019s inflation story at the close of 2025 is one of supply-side pressure meeting festive intensity. This can be seen by the biggest risers last month:<\/p>\n<ul>\n<li><strong>The housing, water, electricity, and gas category \u2014 which carries a massive 40.68% weight in the basket \u2014 remains the dominant driver<\/strong>, rising 5.1% y-o-y. While this represents a slight cooling from the 7% highs seen earlier in 2025, the segment continues to be the primary engine of domestic cost-of-living adjustments;<\/li>\n<li><strong>Transport costs surged 3.56% y-o-y in December after a brief reprieve in November.<\/strong> The sector recorded a sharp m-o-m jump of 3.10%, largely reflecting the Fuel Pricing Committee\u2019s <a href=\"https:\/\/enterpriseam.com\/uae\/2025\/12\/03\/this-morning-november-was-a-bad-month-for-stocks-youll-pay-more-at-the-pump-this-month\/\" target=\"_blank\" rel=\"noopener\">upward adjustment<\/a> of petrol and diesel prices at year-end, before <a href=\"https:\/\/enterpriseam.com\/uae\/2026\/01\/05\/this-morning-fuel-prices-slashed-for-january-minimum-wage-hiked-for-emiratis\/\" target=\"_blank\" rel=\"noopener\">lowering them sharply<\/a> this month;<\/li>\n<li><strong>Food and beverage <\/strong>also ticked up to 1.18% y-o-y in December;<\/li>\n<li>Meanwhile, <strong>recreation, sport, and culture<\/strong> saw a massive monthly jump of 8.72%, likely fueled by high demand during the festive season and major international events.<\/li>\n<\/ul>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2026\/1\/723.png?ssl=1\" \/><\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Also rising significantly on a m-o-m basis:<\/strong> food and beverage, which rose to 0.48% from a deflationary dip in November; and transport, which jumped to 3.1%, also from a deflationary dip the previous month.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>For the full year, Dubai\u2019s inflation averaged 2.8% <\/strong>\u2014 its slowest annual pace since 2021, Emirates NBD said in a <a href=\"https:\/\/www.emiratesnbdresearch.com\/-\/media\/dubai-cpi-inflation-december-2025.pdf\" target=\"_blank\" rel=\"noopener\">research note (pdf)<\/a>.<\/p>\n<p style=\"padding: 0;margin: 0;line-height: 1.15;text-align: left\"><strong>Heading into the new year<\/strong>, analysts expect price growth to moderate as the housing engine that dominated 2025 begins to cool. \u201cWe forecast a slowdown to 2.5% this year, anticipating slower housing inflation and transport inflation that will be deflationary on average,\u201d ENBD says.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Transport costs surged 3.56% y-o-y in December after a brief reprieve in November<\/p>\n","protected":false},"author":1,"featured_media":111687,"comment_status":"closed","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":[19,7,285],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-111686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam-uae","tag-inflation","wpautop","entry"],"acf":{"mongo_id":"efd7f829-01b4-4919-b3d9-371086ae2739","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/7\/443.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Dubai\u2019s inflation accelerates in December on higher transport and food costs","related_issue":[111679],"teaser":"Transport costs surged 3.56% y-o-y in December after a brief reprieve in November","photo_link":"","related_sponsor":"","voice_url":"","en_translation_ref_id":"","section_story_id":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Dubai\u2019s inflation accelerates in December on higher transport and food costs - UAE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/uae\/2026\/01\/20\/dubais-inflation-accelerates-in-december-on-higher-transport-and-food-costs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dubai\u2019s 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