Consumer prices in the United Arab Emirates dropped 1.1 percent year-on-year in May of 2019, following a 2.1 percent decline in the previous month. It was the smallest decrease in consumer prices since January, as prices fell at a softer pace for housing & utilities (-5.5 percent vs -5.9 percent in April); food & beverages (-1.0 percent vs -1.4 percent); clothing & footwear (-3.4 percent vs -5.0 percent) and health (-0.1 percent vs -0.2 percent). In addition, transport cost rebounded (0.8 percent vs -2.2 percent) while prices went up faster for communication (0.6 percent vs 0.1 percent); restaurants & hotels (5.4 percent vs 4.8 percent) and recreation & culture (19.1 percent vs 7.9 percent). On the other hand, cost slowed for furniture & household equipment (2.0 percent vs 2.7 percent) and education (1.2 percent vs 1.4 percent). On a monthly basis, consumer prices went up 1.0 percent, following a 0.2 percent rise in April. Inflation Rate in the United Arab Emirates averaged 2.07 percent from 1990 until 2019, reaching an all time high of 12.30 percent in December of 2008 and a record low of -2.50 percent in February of 2019.
Inflation Rate in the United Arab Emirates is expected to be -1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in the United Arab Emirates to stand at 2.10 in 12 months time. In the long-term, the United Arab Emirates Inflation Rate is projected to trend around 2.30 percent in 2020, according to our econometric models.