UAE: Dubai dropped 16 places lower in the recent Cost of Living index
Dubai Residents can heave a sigh of relief as the city dropped 16 places lower than last year in the recent Cost of Living index of 131 cities by the Economist Intelligence Unit. The reason Dubai has become more affordable — and according to economists — more competitive is the lower housing cost, attracting more people. Housing is one of the largest categories in the inflation basket compared to food, transport, clothing, etc. Hence even if other categories have risen, the increase is marginal.
Dubai Statistics Centre reported in January a decrease in the rate of inflation in food; non-alcoholic beverage, housing, water, electricity, gas and fuel, entertainment and culture, and furniture, furnishings and household items. UAE commodities traders are optimistic too, and estimated that prices will be the same or slightly lower, especially of rice, during a few months this year.
Dubai residents reacted to the index, stating that though rents have fallen, essential commodities and utilities have risen sharply. This perception of ârise in the cost of living’ said one economist, pales when set against the more substantial increases in the emerging markets, particularly Asia. Gulf News has compiled a price basket, comparing everyday items across four UAE supermarkets.
- Kuwait in financial flux: KSE closes the gap, making up for previous weeks' losses
- House of Saud lays out its cards: Saudi's private sector sets out its stalls to conquer 2015 via education, health, economics, social services
- Oil losses good for the Gulf sector? Slipping prices, now below $60, no threat to Saudi market
- Dubai's still got what it takes: trade tops Dh1 trillion in 2014
- Is the Syrian crisis boosting Jordan's agricultural exports? Kingdom sees more than Dead Sea product exposure with 2014's increased fruit, veg, sheep trade abroad