ID :
123022
Wed, 05/19/2010 - 14:23
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Shortlink :
https://oananews.org//node/123022
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Abu Dhabi consumer prices show 2.16% increase in first four months
Abu Dhabi, May 19, 2010 (WAM) - Consumer prices in Abu Dhabi rose 2.16 per cent during the first four months of this year, a new report by Statistics Centre Abu Dhabi (SCAD) shows according to a report in "Gulf News."
The consumer price index (CPI) stood at 117.70 points from January to April, up from 115.22 points for the same period last year, SCAD said in its April report released yesterday. The study analyses results from the CPI calculation, with 2007 fixed as the base year.
Gıyas Gokkent, group chief economist at National Bank of Abu Dhabi (NBAD), said the results are in tune with expectations.
"In 2010, we expected a slight bounce, because of low base — as the bottom of slowdown was March to April 2009. We thought there would be a bounce in food prices and that has held," he said.
In 2008, demand pull factors, such as an increase in public wages, and cost push factors like increased oil prices, drove inflation up. However, last year, these factors disappeared due to a dampening of the global economy and instead deflationary factors took hold. "We didn't see wages increase or a growth in credit during 2009. Those had a dampening effect on inflation."
Also with increased rents in 2008, and a reverse due to a rise in housing supply last year, there was downward pressure on inflation, he said.
With recovering oil prices this year and a rise in food prices, the short-term outlook for the region as a whole is of low single digit inflation.
Oil impact
Two years ago, oil prices hit a high of US$147 per barrel, with an annual average price of US$99.57. Meanwhile, last year saw the average decline to US$61.66 per barrel.
"Since then, there was a slight uptake in oil at US$76. Compared to year-to-date, that could also flow into some price increases in the transport sector, for example," Gokkent said.
Additionally, the US dollar strengthening against the euro is another anti-inflationary factor. "Certain imports in GCC [Gulf Cooperation Council] countries are from Europe. This should clamp down on inflation," Gokkent said.
April itself saw an inflation of 2.6 per cent year-on-year, as the index accelerated from 114.90 to 117.89 points. However, on monthly basis, April CPI dropped 0.41 per cent from March this year from 118.37 points.
The yearly inflation reflects the net change in the consumer basket prices, comprising upward and downward movements during the two comparison periods, SCAD clarified.
Abu Dhabi's CPI inflation rates are the first issued in the country, more than a year after the Ministry of Economy began conducting income and expenditure surveys.
"Statistical information is important for policymaking. That became particularly well understood in 2008. Going forward will see a greater frequency in data output," Gokkent said. – Gulf News
The consumer price index (CPI) stood at 117.70 points from January to April, up from 115.22 points for the same period last year, SCAD said in its April report released yesterday. The study analyses results from the CPI calculation, with 2007 fixed as the base year.
Gıyas Gokkent, group chief economist at National Bank of Abu Dhabi (NBAD), said the results are in tune with expectations.
"In 2010, we expected a slight bounce, because of low base — as the bottom of slowdown was March to April 2009. We thought there would be a bounce in food prices and that has held," he said.
In 2008, demand pull factors, such as an increase in public wages, and cost push factors like increased oil prices, drove inflation up. However, last year, these factors disappeared due to a dampening of the global economy and instead deflationary factors took hold. "We didn't see wages increase or a growth in credit during 2009. Those had a dampening effect on inflation."
Also with increased rents in 2008, and a reverse due to a rise in housing supply last year, there was downward pressure on inflation, he said.
With recovering oil prices this year and a rise in food prices, the short-term outlook for the region as a whole is of low single digit inflation.
Oil impact
Two years ago, oil prices hit a high of US$147 per barrel, with an annual average price of US$99.57. Meanwhile, last year saw the average decline to US$61.66 per barrel.
"Since then, there was a slight uptake in oil at US$76. Compared to year-to-date, that could also flow into some price increases in the transport sector, for example," Gokkent said.
Additionally, the US dollar strengthening against the euro is another anti-inflationary factor. "Certain imports in GCC [Gulf Cooperation Council] countries are from Europe. This should clamp down on inflation," Gokkent said.
April itself saw an inflation of 2.6 per cent year-on-year, as the index accelerated from 114.90 to 117.89 points. However, on monthly basis, April CPI dropped 0.41 per cent from March this year from 118.37 points.
The yearly inflation reflects the net change in the consumer basket prices, comprising upward and downward movements during the two comparison periods, SCAD clarified.
Abu Dhabi's CPI inflation rates are the first issued in the country, more than a year after the Ministry of Economy began conducting income and expenditure surveys.
"Statistical information is important for policymaking. That became particularly well understood in 2008. Going forward will see a greater frequency in data output," Gokkent said. – Gulf News
