Abu Dhabi inflation at 1.1% in 2012, says Statistics Center Abu Dhabi

The report analyzes the CPI calculations for the periods under review, with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households.

The report indicates an overall rise of 1.1% in consumer prices during 2012 compared with 2011, as shown by the increase in the CPI from an average 121.6 points in 2011to 122.9 points in 2012, representing the combined outcome of the upward and downward movements in various expenditure groups during the two periods compared.

Consumer prices in 2012 compared with 2011

As SCAD's report elaborates, the single largest contributor to the y-o-y rise in consumer prices during 2012 was the "Restaurants and hotels" group, which contributed 51.8 percentage points to the increase as the group's prices grew 16.4%.

The next largest contributor to the rise in the CPI during 2012 was the "Food and non-alcoholic beverages" group which contributed 44.8 percentage points of the rise in the index during the twelve months 2012 compared with the same period of 2011, as a result of increases in the prices of most of the subgroups falling under this group, including the prices of "Coffee, tea and cocoa" (up 7.6%), "Meat" (5.3%), "Oil and fats" (up 6.0%) "Vegetables" (up 4.3%) and "Fish and seafood" (up 4.5%).

The "Education" group contributed 12.5 percentage points of the overall increase recorded in 2012 compared with 2011.

The prices of "Clothing and footwear" advanced by 1.9% y-o-y during 2012, contributing 13.2 percentage points to the total increase by all groups.

The main group that slowed down the rise in consumer prices during 2012 compared with 2011 was "Housing, water, electricity, gas and other fuels" which detracted 45.7 percentage points from the overall change in the CPI, with the average prices of the group falling by 1.3% between the periods compared.

Consumer prices in Q4 2012

As SCAD's report finds, average consumer prices increased by 0.8% in the fourth quarter 2012 compared with the same period of 2011.

The "Restaurants and hotels" group contributed 69.6 percentage points to the y-o-y increase in the CPI in Q4 2012, as the prices of the group surged 14.5% between the quarters compared.

The next largest contributor to the overall y-o-y rise in the CPI over the fourth quarter of 2012 was "Clothing and footwear" which contributed 39.1 percentage points to rise in the index. This was due to increases in the prices of most of the subgroups within this group, pushing the average prices of the group 4.0% up.

The main group that slowed down the rise in consumer prices during the fourth quarter of 2012 compared with the same period of 2011 was "Housing, water, electricity, gas and other fuels", which detracted 62.7 percentage points from the overall increase in the CPI index. The average prices of this group declined by 1.3%.

The CPI edged up 0.1% in Q4 compared with Q3 2012. The most significant individual increase came from prices for "Alcoholic beverages and tobacco" which grew 5.7%.

Consumer prices in December 2012/2011

Average consumer prices advanced 0.7% in December 2012 compared with December 2011, as the CPI increased from 122.4 points in December 2011to 123.3 points in December 2012, reflecting the net movement (increases and decreases) in consumer prices between the aforesaid months.

The largest increase in prices during December 2012 compared with December 2011, was in the "Restaurants and hotels" group, which advanced 14.5%, followed by "Clothing and footwear" (up 4.0%), "Alcoholic beverages and tobacco" (up 11.7%) and "Transport" (up 3.0%), while the "Housing, water, electricity, gas and other fuels" group retreated by 1.1%.

Consumer prices in December compared with November 2012

Average consumer prices decreased by 0.3% in December 2012 compared with November 2012, reflecting the net outcome of upward and downward movements in the consumer basket items between the two months compared.

Impact of CPI change in 2012/2011 by household welfare levels

According to SCAD's report, the 1.1 rise in consumer prices in 2012 compared with 2011, when detailed by welfare levels, is shown to have impacted consumer prices for households of the bottom welfare levels by a 1.3% rise for the same period of comparison. Meanwhile prices increased by 1.1% and 1.2% for households of the upper and the middle welfare level, respectively.

Impact of CPI change in December 2012/2011 by household welfare levels

The 0.7% increase in consumer prices in December 2012 by compared with December 2011 produced a rise by 0.5% in consumer prices for households in the bottom and the middle welfare quintiles, and by 0.9% for households of the top welfare level.

Impact of CPI change in December/November 2012 by household welfare levels

The 0.3% fall recorded in consumer prices in December compared with November 2012 led to a drop of 0.5% in consumer prices for households of the bottom welfare level, 0.2% for households of the top quintile and 0.3% for the middle welfare level.

Impact of CPI change in 2012/2011 by household type

A breakdown by household type of the 1.1 rise in consumer prices during 2012, compared with 2011 shows that prices advanced by: 1.2% for citizen households, 1.0% for non-citizen households and 1.6% for shared households.

Impact of CPI change in December 2012/2011 by household type

As a result of the 0.7 rise in consumer prices in December 2012 compared with December 2011, consumer prices increased by 0.6% for citizen households, 0.8% for non-citizen households and 1.0% for shared households between two periods compared.

Impact of CPI change in December/November 2012 by household type

The 0.3% fall in consumer prices in December compared with November 2012 caused prices to nudge down by a proportional 0.3% for citizen households and by 0.2% for non-citizen households and 0.6% for shared households between the two months compared.

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 authorized 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.