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172689
Sun, 04/03/2011 - 11:31
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Statistics Abu Dhabi: 2010 Inflation at 3.1%
Abu Dhabi, April 3, 2011 (WAM) - Statistics Centre - Abu Dhabi issued its annual report on the consumer price index (CPI) for the year 2010, which analyses the CPI calculations for the year under review with the year 2007 fixed as the base year, the report also compares the results obtained with the CPI data for 2009 and details CPI results by welfare levels and types of households.
The report puts inflation in 2010 at 3.1%, compared with 0.8% in 2009, as shown by the rise in the CPI from 115.8 points in 2009 to 119.3 points in 2010.
The report shows that the "housing, water, electricity, gas and other fuels" group contributed 55.4% of the overall y-o-y increase in prices during 2010, due to a surge of 4.9% in house rents.
The next highest contributor to the overall year-over-year increase in the CPI in 2010 compared to 2009 was the "Food and non-alcoholic beverages group", which accounted for 36.8% of the rise in the index during the aforesaid period due to increases in the prices of most of the component subgroups of this main group, as the prices of the "Sugar, jam, honey, chocolate, and confectionery" increased by 26.6%, "Vegetables" by 15.1%, "Meat" by 12.9%, "Fruits" by 6.7%,
"Fish and seafood "by 6.5%, "Food products not elsewhere classified" by 5.5% and "Coffee, tea and cocoa" by 1.8%.
The "transport" group contributed 19.2% to the year-over year rise in consumer prices for the periods compared as a result of an overall increase of 6.5% in its component subgroups, namely, the cost of "operation of personal transport equipment", which grew by 8.1% and the "transport services" subgroup which advanced 1.7%.
The "Education" group accounted for 13.7% of the overall increase in consumer prices during the year 2010 compared with 2009, reflecting a surge of 14.5% in "tuition fees".
On the other hand, one of the key groups that reined in consumer prices during 2010 compared to 2009 was the "clothing and footwear" group, which detracted 28% from the overall rise in consumer prices for the period under review, during which the prices of this group retreated by 8.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 6.9% and 22.7%, respectively.
The report explains that the 3.1% rise in consumer prices during 2010 compared with 2009, has led to an increase of 3% in consumer prices for households of the bottom welfare quintile during this period, compared with 2009. The corresponding rise for other welfare levels was 2.7% for households of the top quintile and 3.3% for the upper middle welfare quintile.
Analysis of the overall inflation of (3.1%) in terms of its impact by type of household for the same periods of comparison shows that consumer prices have risen by 2.7% for national households, compared to 3.5% for non-national households and 2.7% for collective households.
SCAD's report explains that rises in the CPI do not necessarily correspond to higher prices for all the goods and services that make up the consumer basket, nor do they mean that all goods and services have increased by the same percentage (3.1% in this case); for there are goods and services whose prices have risen at rates above the overall rate (3.1%) and others whose rate of increase was below this general average. There are also goods and services whose prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during 2010 compared with 2009 produced an average increase in prices by 3.1%.
The report points out that the "Housing, water, electricity, gas and other fuels" group remained the largest contributor to inflation in 2010, having accounted for 55.4% of that increase. This contribution resulted from a surge of 4.4% in the prices of this group and due the group's sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main driver of inflation within this group was house rents, which advanced by 4.9%. It is worth noting that this subgroup constitutes 87.7% of the group's total weight.
As the report indicates, the second largest contributor to the overall year-over-year increase in the CPI in 2010 compared to 2009 was the "Food and non-alcoholic beverages group", which accounted for 36.8% of the rise in the index during the aforesaid period due to increases in the prices of most of the component subgroups of this main group, with the prices of the "Sugar, jam, honey, chocolate, and confectionery" subgroup rising by 26.6%, "Vegetables" by 15.1%, "Meat" by 12.9%, "Fruits" by 6.7% "Fish and seafood "by 6.5%, "Food products not elsewhere classified" by 5.5% and "Coffee, tea and cocoa " by 1.8%. On the other hand, the prices of the "Bread and cereals" and "Oils and fats" subgroups retreated by 5.6% and 5.0%, respectively.
The "transport" group contributed 19.2% to the year-over year rise in 2010 consumer prices compared with 2009 as a result of an overall increase of 6.5% in its component subgroups, namely, the "transport services" subgroup which advanced 1.7%, due mainly to a rise of 9.9% in the cost of air transportation. In addition, the cost of "operation of personal transport equipment" grew by 8.1%.
The "Education" group accounted for 13.7% of the overall increase that occurred during the year 2010 compared with 2009.
The "clothing and footwear" group, detracted 28% from the overall rise in consumer prices for the period under review 2010 compared with 2009, during which the prices of this group retreated by 8.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 6.9% and 22.7%, respectively.
Monthly Sub-indices of the Main Expenditure Groups, Compared with the General Index: The Annual CPI Bulletin of Statistics Centre - Abu Dhabi reveals that the sub-index for "Food and non-alcoholic beverages" group was higher than the general index for all the months of 2010: the average sub-index of this group for the months of 2010 was 125.1 points, while the general index stood at 119.3 points on average over the same period, which means that the group "Food and non-alcoholic beverages" had a positive contribution to inflation in 2010.
The bulletin indicates that the average sub-index for the "Alcoholic beverages and tobacco" in 2010 was 118.3 points, i.e. below the general index, which stood at an average of 119.3 points.
Similarly, the "Clothing and footwear" slowed down the rise in general level of prices in 2010, as the sub-index for the group in 2010 averaged 112.4 points, compared to an average general Index of 119.3 points.
The of "housing, water, electricity, gas and other fuels" group was characterised by higher prices than the general price level during all months of 2010, indicating that this group, which has a relative weight of about 38%, dominated by house rents, has contributed positively to inflation i.e. pushed up the general level of prices in 2010.
Conversely, the sub-index for "Furnishings, household equipment and routine household maintenance" (116.7 points) was below general during the months of 2010 (119.3 points), revealing a negative contribution to inflation by this group during reporting period.
SCAD's bulletin reports a lower sub-index, compared with the general index for the communications group over all the months of 2010, while the sub-index for the "Education" group was higher throughout the period referred to.
Lastly, the sub-index for the "Miscellaneous goods and services" was on average lower than the general index, indicating the group in question contributed towards reining in inflation during 2010.
SCAD's bulletin explains that price movements in 2009 and 2010 directly affect the y-o-y rates of inflation for the months in 2010, which exhibited a steady upward trend from (1.4%) in January to (4.1%) in the month of November, before retreating to (3.3%) in December 2010.
SCAD's report also elaborated on the impact of the CPI movement on different welfare levels, the report finds that the rise in consumer prices during 2010 by 3.1% above the price levels for the year 2009 resulted in a surge of 3.0% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.7% for households of the top quintile, 3.3% for the upper middle quintile and 3.5% for the lower middle quintile, which suffered by the largest increase among the five welfare levels.
Detailed by its impact according to household type, the overall 3.1% year-over-year rise in consumer prices for the months of 2010 pushed up consumer prices for national households by 2.7%, compared to 3.5% for non-national households and 2.7% for collective households.
In preparing its CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field, using a broad and highly representative basket of goods and service, to ensure accuracy in the calculation of the monthly and yearly index. SCAD is the sole officially authorised source for monitoring and reporting changes in prices and inflation in the Emirate of Abu Dhabi.
SCAD's Price Indices Section has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households.
To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate. - Emirates News Agency, WAM
The report puts inflation in 2010 at 3.1%, compared with 0.8% in 2009, as shown by the rise in the CPI from 115.8 points in 2009 to 119.3 points in 2010.
The report shows that the "housing, water, electricity, gas and other fuels" group contributed 55.4% of the overall y-o-y increase in prices during 2010, due to a surge of 4.9% in house rents.
The next highest contributor to the overall year-over-year increase in the CPI in 2010 compared to 2009 was the "Food and non-alcoholic beverages group", which accounted for 36.8% of the rise in the index during the aforesaid period due to increases in the prices of most of the component subgroups of this main group, as the prices of the "Sugar, jam, honey, chocolate, and confectionery" increased by 26.6%, "Vegetables" by 15.1%, "Meat" by 12.9%, "Fruits" by 6.7%,
"Fish and seafood "by 6.5%, "Food products not elsewhere classified" by 5.5% and "Coffee, tea and cocoa" by 1.8%.
The "transport" group contributed 19.2% to the year-over year rise in consumer prices for the periods compared as a result of an overall increase of 6.5% in its component subgroups, namely, the cost of "operation of personal transport equipment", which grew by 8.1% and the "transport services" subgroup which advanced 1.7%.
The "Education" group accounted for 13.7% of the overall increase in consumer prices during the year 2010 compared with 2009, reflecting a surge of 14.5% in "tuition fees".
On the other hand, one of the key groups that reined in consumer prices during 2010 compared to 2009 was the "clothing and footwear" group, which detracted 28% from the overall rise in consumer prices for the period under review, during which the prices of this group retreated by 8.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 6.9% and 22.7%, respectively.
The report explains that the 3.1% rise in consumer prices during 2010 compared with 2009, has led to an increase of 3% in consumer prices for households of the bottom welfare quintile during this period, compared with 2009. The corresponding rise for other welfare levels was 2.7% for households of the top quintile and 3.3% for the upper middle welfare quintile.
Analysis of the overall inflation of (3.1%) in terms of its impact by type of household for the same periods of comparison shows that consumer prices have risen by 2.7% for national households, compared to 3.5% for non-national households and 2.7% for collective households.
SCAD's report explains that rises in the CPI do not necessarily correspond to higher prices for all the goods and services that make up the consumer basket, nor do they mean that all goods and services have increased by the same percentage (3.1% in this case); for there are goods and services whose prices have risen at rates above the overall rate (3.1%) and others whose rate of increase was below this general average. There are also goods and services whose prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during 2010 compared with 2009 produced an average increase in prices by 3.1%.
The report points out that the "Housing, water, electricity, gas and other fuels" group remained the largest contributor to inflation in 2010, having accounted for 55.4% of that increase. This contribution resulted from a surge of 4.4% in the prices of this group and due the group's sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main driver of inflation within this group was house rents, which advanced by 4.9%. It is worth noting that this subgroup constitutes 87.7% of the group's total weight.
As the report indicates, the second largest contributor to the overall year-over-year increase in the CPI in 2010 compared to 2009 was the "Food and non-alcoholic beverages group", which accounted for 36.8% of the rise in the index during the aforesaid period due to increases in the prices of most of the component subgroups of this main group, with the prices of the "Sugar, jam, honey, chocolate, and confectionery" subgroup rising by 26.6%, "Vegetables" by 15.1%, "Meat" by 12.9%, "Fruits" by 6.7% "Fish and seafood "by 6.5%, "Food products not elsewhere classified" by 5.5% and "Coffee, tea and cocoa " by 1.8%. On the other hand, the prices of the "Bread and cereals" and "Oils and fats" subgroups retreated by 5.6% and 5.0%, respectively.
The "transport" group contributed 19.2% to the year-over year rise in 2010 consumer prices compared with 2009 as a result of an overall increase of 6.5% in its component subgroups, namely, the "transport services" subgroup which advanced 1.7%, due mainly to a rise of 9.9% in the cost of air transportation. In addition, the cost of "operation of personal transport equipment" grew by 8.1%.
The "Education" group accounted for 13.7% of the overall increase that occurred during the year 2010 compared with 2009.
The "clothing and footwear" group, detracted 28% from the overall rise in consumer prices for the period under review 2010 compared with 2009, during which the prices of this group retreated by 8.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 6.9% and 22.7%, respectively.
Monthly Sub-indices of the Main Expenditure Groups, Compared with the General Index: The Annual CPI Bulletin of Statistics Centre - Abu Dhabi reveals that the sub-index for "Food and non-alcoholic beverages" group was higher than the general index for all the months of 2010: the average sub-index of this group for the months of 2010 was 125.1 points, while the general index stood at 119.3 points on average over the same period, which means that the group "Food and non-alcoholic beverages" had a positive contribution to inflation in 2010.
The bulletin indicates that the average sub-index for the "Alcoholic beverages and tobacco" in 2010 was 118.3 points, i.e. below the general index, which stood at an average of 119.3 points.
Similarly, the "Clothing and footwear" slowed down the rise in general level of prices in 2010, as the sub-index for the group in 2010 averaged 112.4 points, compared to an average general Index of 119.3 points.
The of "housing, water, electricity, gas and other fuels" group was characterised by higher prices than the general price level during all months of 2010, indicating that this group, which has a relative weight of about 38%, dominated by house rents, has contributed positively to inflation i.e. pushed up the general level of prices in 2010.
Conversely, the sub-index for "Furnishings, household equipment and routine household maintenance" (116.7 points) was below general during the months of 2010 (119.3 points), revealing a negative contribution to inflation by this group during reporting period.
SCAD's bulletin reports a lower sub-index, compared with the general index for the communications group over all the months of 2010, while the sub-index for the "Education" group was higher throughout the period referred to.
Lastly, the sub-index for the "Miscellaneous goods and services" was on average lower than the general index, indicating the group in question contributed towards reining in inflation during 2010.
SCAD's bulletin explains that price movements in 2009 and 2010 directly affect the y-o-y rates of inflation for the months in 2010, which exhibited a steady upward trend from (1.4%) in January to (4.1%) in the month of November, before retreating to (3.3%) in December 2010.
SCAD's report also elaborated on the impact of the CPI movement on different welfare levels, the report finds that the rise in consumer prices during 2010 by 3.1% above the price levels for the year 2009 resulted in a surge of 3.0% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.7% for households of the top quintile, 3.3% for the upper middle quintile and 3.5% for the lower middle quintile, which suffered by the largest increase among the five welfare levels.
Detailed by its impact according to household type, the overall 3.1% year-over-year rise in consumer prices for the months of 2010 pushed up consumer prices for national households by 2.7%, compared to 3.5% for non-national households and 2.7% for collective households.
In preparing its CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field, using a broad and highly representative basket of goods and service, to ensure accuracy in the calculation of the monthly and yearly index. SCAD is the sole officially authorised source for monitoring and reporting changes in prices and inflation in the Emirate of Abu Dhabi.
SCAD's Price Indices Section has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households.
To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate. - Emirates News Agency, WAM
