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176131
Mon, 04/18/2011 - 12:06
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Statistics Centre - Abu Dhabi: Inflation in March at 1.9% YOY
Abu Dhabi, April 18, 2011 (WAM) - Statistics Centre - Abu Dhabi - issued yesterday its monthly report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the month of March 2011. The report analyses the CPI calculations for the month under review with the year 2007 fixed as the base year.
It also details CPI results by welfare levels and types of households.
As the report reveals, inflation during the first three months of 2011 stood at 2.8%, compared with the same period of 2010, as shown by the increase in the CPI from 117.6 points for Q1 2010 to 121.0 for Q1 2011.
The CPI also grew by 1.9% to 120.7 points in March 2011 compared with March 2010, when the index recorded 118.4 point.
However, month-to-month comparison shows that the CPI retreated by 0.4% in March 2011 to 120.7 points, down from 121.2 points in February 2011.
Analysed in terms of its impact on the various levels of welfare, the overall rise of 2.8% in consumer prices during the first three months of 2011 compared with the same period in 2010 has led to an increase of 4.4% in consumer prices for households of the bottom welfare quintile over the same period of comparison. As for the other welfare levels, consumer prices grew by 2.1% for households of the top quintile and by 2.9% for the upper middle welfare quintile.
The year-on-year rise of 2.8% in consumer prices for the first three months of 2011 pushed up consumer prices by 2.9% for national households and by 2.6% and 3.8% for non-national households and collective households, respectively.
Average CPI for the First Three Months of 2010 Compared with the Same Period of 2010: As pointed out above, consumer prices rose 2.8% in Q1 2011 compared with Q1 2010, due to a rise in average CPI from 117.6 points during the first quarter of 2010 to 121.0 points for the same period of 2011, reflecting the net change in the prices of goods and services of the consumer basket during the periods compared.
SCAD's report notes 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 (2.8% in this case); for there are goods and services whose prices have risen at rates above the overall rate (2.8%) 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 the first three months of 2011 compared with the same period of 2010 has produced an average increase in prices by 2.8%.
Expenditure groups: Q1 2011 Compared with Q1 2010 SCAD's CPI report shows that the "Food and non-alcoholic beverages group", contributed the largest share (52.6%) of the rise in the index during the first quarter of 2011, due to increases in the prices of most of the subgroups falling under this group: prices of the "meat" subgroup rose by 13.8%, while "vegetables" rose by 12.6%, "fruits" by 12.5%, "fish and seafood" by 10.7%, "coffee, tea and cocoa" by 10.6%, "mineral waters, soft drinks, fruit and vegetable juices" by 9.9%, "foods not elsewhere classified" by 9.0%, "sugar, jam, honey, chocolate and confectionery" by 5.3%, "bread cereals" by 5.0% and the "Milk, cheese and eggs" subgroup by 1.4%. On the other hand the prices of "Oils and fats" declined by 0.4%.
The "Housing" Group As the monthly report finds, the second largest contributor to the overall year-on-year increase in the CPI over the first three months of 2011 was the "housing, water, electricity, gas and other fuels" group, which accounted for 36.4% of that increase.
The "transport" group accounted for 35.2% of the year-on-year rise in consumer prices during Q1 2011, while the contribution of the "Furnishings, household equipment and routine household maintenance" group and the "Education" group was 8.1% and 4.9%, respectively.
Expenditure groups whose prices declined in Q1 2011 Compared with Q1 2010: Among the main groups that slowed down the rise in consumer prices during the first three months of 2011 compared with the same period of 2010 was the "clothing and footwear" group, which detracted 50.9% from inflation during the aforesaid period. The prices of this group decreased by 14.9% as a result of a drop in the prices of the "Clothing" and "Footwear" subgroups by 14.8% and 15.4%, respectively. A decline was also recorded in the "Communications" group, which contributed -0.6% to the overall movement in consumer prices during Q1 2011.
Consumer prices in March 2011 compared with March 2010: SCAD reported an average rise of 1.9% in consumer prices for March 2011 compared with March 2010, with the CPI at 120.7 points in March 2011, up from 118.4 points in March 2010. This increase in prices reflects the net movement (increases and decreases) of consumer prices during the two months compared.
The most significant individual increase was contributed by the "Transport" group, which advanced 10.6%, followed by "Furnishing, household equipment and routine maintenance of houses" (up 8.1%) and "Food and non-alcoholic beverages" (up 7.1%). In addition, the prices of "Education" increased by 4.3%, "Miscellaneous goods and services" by 3.0%, "Housing, water, electricity, gas and other fuels" group by 1.9%, "Recreation and culture" by 2.0%, and "Restaurants and hotels" by 0.5%.
Meanwhile, the prices of the "Clothing and footwear" group declined by 16.5% as a result of a drop in the prices of the "Clothing" subgroup by 16.4% and the "footwear" subgroup by 17.4%. Further, the prices of the "Communication" group decreased by 0.3%, reflecting a fall in the price of "Postal services" by 9.6% and a decrease in "Telephone and telefax equipment" prices by 25.6%.
Price levels in March 2011 compared with February 2011: A month-to-month comparison of CPI shows that consumer prices edged down by 0.4% in March 2011 compared with February 2011, as the CPI dropped from 121.2 points in February 2011 to 120.7 points in March 2011. This overall decrease in prices reflects the net movement (increases and decreases) of consumer prices between the two months compared.
The largest decline was that of the "clothing and footwear" group, which dropped 2.7% in March 2011 compared with February 2011, mainly due to a fall of 3.2% in the prices of the "clothing" subgroup. The month of March 2011 also saw the prices of the "Food and non-alcoholic beverages" group decrease by 2.0% compared with their levels in February 2011.
Impact of CPI change by welfare levels: 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 the first quarter of 2011 by 2.8% above the price levels reported for the same period in 2010 resulted in a surge of 4.4% in consumer prices for households of the bottom welfare quintile over the same period of comparison. The corresponding rise for other welfare levels was 2.1% for households of the top quintile and 2.9% for the upper middle quintile. While the prices advanced 3.8% for the "lower middle" welfare level.
The rise in consumer prices in March 2011 by 1.9% compared with March 2010 caused a rise of 3.3% in consumer prices for households in the "bottom welfare level", while prices advanced by 1.2% for households in the "upper welfare level" and by 2.6% for households of the middle welfare quintile.
The report also details the impact on different welfare levels of the 0.4% fall in consumer prices during the month of March 2011 compared to February 2011. This drop caused consumer prices for the bottom and middle welfare quintiles to edge down by 0.6%, and 0.5%, respectively, while impacting consumer prices for the middle, upper middle and top welfare levels by declines 0.4% each.
Impact of CPI change by household type: Detailed by its impact according to household type, the 2.8% rise in consumer prices during first three months of 2011, compared with Q1 2010 pushed up consumer prices for national households by 2.9%, compared with 2.6% for non-national households and 3.8% for collective households.
The rise in consumer prices in March 2011 by 1.9% compared with March 2010 caused a rise in prices levels for national households by 2.2%, while prices increased by 1.6% for non-national households and by 2.6% for collective households, between the periods compared.
Finally, a break down by household type of the (0.4%) drop in consumer prices during March 2011 compared with February 2011 caused a 0.3% decline in prices levels for national households, and a corresponding drop of 0.5% and 0.8% in consumer prices for non-national households and collective households, respectively.
SCAD's CPI report compiled in conformity with the highest technical standards: In preparing its monthly 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 index, which is the sole officially authorised source for monitoring changes in prices and inflation in the Emirate of Abu Dhabi.
SCAD 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
It also details CPI results by welfare levels and types of households.
As the report reveals, inflation during the first three months of 2011 stood at 2.8%, compared with the same period of 2010, as shown by the increase in the CPI from 117.6 points for Q1 2010 to 121.0 for Q1 2011.
The CPI also grew by 1.9% to 120.7 points in March 2011 compared with March 2010, when the index recorded 118.4 point.
However, month-to-month comparison shows that the CPI retreated by 0.4% in March 2011 to 120.7 points, down from 121.2 points in February 2011.
Analysed in terms of its impact on the various levels of welfare, the overall rise of 2.8% in consumer prices during the first three months of 2011 compared with the same period in 2010 has led to an increase of 4.4% in consumer prices for households of the bottom welfare quintile over the same period of comparison. As for the other welfare levels, consumer prices grew by 2.1% for households of the top quintile and by 2.9% for the upper middle welfare quintile.
The year-on-year rise of 2.8% in consumer prices for the first three months of 2011 pushed up consumer prices by 2.9% for national households and by 2.6% and 3.8% for non-national households and collective households, respectively.
Average CPI for the First Three Months of 2010 Compared with the Same Period of 2010: As pointed out above, consumer prices rose 2.8% in Q1 2011 compared with Q1 2010, due to a rise in average CPI from 117.6 points during the first quarter of 2010 to 121.0 points for the same period of 2011, reflecting the net change in the prices of goods and services of the consumer basket during the periods compared.
SCAD's report notes 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 (2.8% in this case); for there are goods and services whose prices have risen at rates above the overall rate (2.8%) 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 the first three months of 2011 compared with the same period of 2010 has produced an average increase in prices by 2.8%.
Expenditure groups: Q1 2011 Compared with Q1 2010 SCAD's CPI report shows that the "Food and non-alcoholic beverages group", contributed the largest share (52.6%) of the rise in the index during the first quarter of 2011, due to increases in the prices of most of the subgroups falling under this group: prices of the "meat" subgroup rose by 13.8%, while "vegetables" rose by 12.6%, "fruits" by 12.5%, "fish and seafood" by 10.7%, "coffee, tea and cocoa" by 10.6%, "mineral waters, soft drinks, fruit and vegetable juices" by 9.9%, "foods not elsewhere classified" by 9.0%, "sugar, jam, honey, chocolate and confectionery" by 5.3%, "bread cereals" by 5.0% and the "Milk, cheese and eggs" subgroup by 1.4%. On the other hand the prices of "Oils and fats" declined by 0.4%.
The "Housing" Group As the monthly report finds, the second largest contributor to the overall year-on-year increase in the CPI over the first three months of 2011 was the "housing, water, electricity, gas and other fuels" group, which accounted for 36.4% of that increase.
The "transport" group accounted for 35.2% of the year-on-year rise in consumer prices during Q1 2011, while the contribution of the "Furnishings, household equipment and routine household maintenance" group and the "Education" group was 8.1% and 4.9%, respectively.
Expenditure groups whose prices declined in Q1 2011 Compared with Q1 2010: Among the main groups that slowed down the rise in consumer prices during the first three months of 2011 compared with the same period of 2010 was the "clothing and footwear" group, which detracted 50.9% from inflation during the aforesaid period. The prices of this group decreased by 14.9% as a result of a drop in the prices of the "Clothing" and "Footwear" subgroups by 14.8% and 15.4%, respectively. A decline was also recorded in the "Communications" group, which contributed -0.6% to the overall movement in consumer prices during Q1 2011.
Consumer prices in March 2011 compared with March 2010: SCAD reported an average rise of 1.9% in consumer prices for March 2011 compared with March 2010, with the CPI at 120.7 points in March 2011, up from 118.4 points in March 2010. This increase in prices reflects the net movement (increases and decreases) of consumer prices during the two months compared.
The most significant individual increase was contributed by the "Transport" group, which advanced 10.6%, followed by "Furnishing, household equipment and routine maintenance of houses" (up 8.1%) and "Food and non-alcoholic beverages" (up 7.1%). In addition, the prices of "Education" increased by 4.3%, "Miscellaneous goods and services" by 3.0%, "Housing, water, electricity, gas and other fuels" group by 1.9%, "Recreation and culture" by 2.0%, and "Restaurants and hotels" by 0.5%.
Meanwhile, the prices of the "Clothing and footwear" group declined by 16.5% as a result of a drop in the prices of the "Clothing" subgroup by 16.4% and the "footwear" subgroup by 17.4%. Further, the prices of the "Communication" group decreased by 0.3%, reflecting a fall in the price of "Postal services" by 9.6% and a decrease in "Telephone and telefax equipment" prices by 25.6%.
Price levels in March 2011 compared with February 2011: A month-to-month comparison of CPI shows that consumer prices edged down by 0.4% in March 2011 compared with February 2011, as the CPI dropped from 121.2 points in February 2011 to 120.7 points in March 2011. This overall decrease in prices reflects the net movement (increases and decreases) of consumer prices between the two months compared.
The largest decline was that of the "clothing and footwear" group, which dropped 2.7% in March 2011 compared with February 2011, mainly due to a fall of 3.2% in the prices of the "clothing" subgroup. The month of March 2011 also saw the prices of the "Food and non-alcoholic beverages" group decrease by 2.0% compared with their levels in February 2011.
Impact of CPI change by welfare levels: 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 the first quarter of 2011 by 2.8% above the price levels reported for the same period in 2010 resulted in a surge of 4.4% in consumer prices for households of the bottom welfare quintile over the same period of comparison. The corresponding rise for other welfare levels was 2.1% for households of the top quintile and 2.9% for the upper middle quintile. While the prices advanced 3.8% for the "lower middle" welfare level.
The rise in consumer prices in March 2011 by 1.9% compared with March 2010 caused a rise of 3.3% in consumer prices for households in the "bottom welfare level", while prices advanced by 1.2% for households in the "upper welfare level" and by 2.6% for households of the middle welfare quintile.
The report also details the impact on different welfare levels of the 0.4% fall in consumer prices during the month of March 2011 compared to February 2011. This drop caused consumer prices for the bottom and middle welfare quintiles to edge down by 0.6%, and 0.5%, respectively, while impacting consumer prices for the middle, upper middle and top welfare levels by declines 0.4% each.
Impact of CPI change by household type: Detailed by its impact according to household type, the 2.8% rise in consumer prices during first three months of 2011, compared with Q1 2010 pushed up consumer prices for national households by 2.9%, compared with 2.6% for non-national households and 3.8% for collective households.
The rise in consumer prices in March 2011 by 1.9% compared with March 2010 caused a rise in prices levels for national households by 2.2%, while prices increased by 1.6% for non-national households and by 2.6% for collective households, between the periods compared.
Finally, a break down by household type of the (0.4%) drop in consumer prices during March 2011 compared with February 2011 caused a 0.3% decline in prices levels for national households, and a corresponding drop of 0.5% and 0.8% in consumer prices for non-national households and collective households, respectively.
SCAD's CPI report compiled in conformity with the highest technical standards: In preparing its monthly 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 index, which is the sole officially authorised source for monitoring changes in prices and inflation in the Emirate of Abu Dhabi.
SCAD 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
