Abu Dhabi Inflation at 1.2% Y-O-Y in January 2013

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.

Consumer prices in January 2013

SCAD indicated that the inflation rate of consumer prices was 1.2% in January 2013 compared with the same month in 2012, as shown by the increase in the CPI to 123.5 points during January 2013, from 122.0 points in 2 January 012.

The "Restaurants and hotels" group accounted for 46.1% of the overall increase in consumer prices as the group's prices advanced 14.6% on average.

The second largest contributor to the overall increase in the CPI during January 2013 was the "Clothing and footwear" group which contributed 22.5% of the total increase during January 2013 compared with the same period of 2012, reflecting an increase of 3.5% in the prices of this group.

The "Transport" group accounted for 21.8% of the overall increase occurring during January 2013 compared with the same period of 2012.

According to SCAD's report, the prices of "Food and non-alcoholic beverages" grew 1.1% y-o-y during January 2013 as a result of increases in the prices of most of the subgroups within this group, including the "Food products not elsewhere classified" subgroup, which advanced by 5.6%, "Coffee, tea and cocoa" by 5.0%, "Vegetables" by 4.1%, "Oils and fats" by 1.7%, and "Meat" by 1.3%.

On the other hand the main group that slowed down the rise in consumer prices during January 2013 compared with the January 2012 was the "Housing, water, electricity, gas and other fuels" group. The group detracted 36.0 percentage points from the overall y-o-y rise in consumer prices between the periods compared, which saw prices of the group decline 1.1%.

Consumer prices in January 2013 compared with December 2012

The report reveals an increase of 0.2% in average consumer prices during January 2013 compared with December 2012. This overall month-over-month rise reflects the net outcome of upward and downward movements in consumer prices between the two months compared.

The main contributors to the rise in consumer prices over the aforesaid period were the "Food and non-alcoholic beverages" and "Recreation and culture" groups, which advanced by 1.0% and 0.9%, respectively.

Impact of CPI change in January 2013/2012 by household welfare levels

Detailed by household welfare levels, the 1.2 rise in consumer prices in January 2013 compared with January 2012, has impacted consumer prices for households of the bottom welfare levels by 1.5% rise for the same period of comparison. Meanwhile prices increased by a proportional 1.2% for households of the top quintile and by 1.1% for households of the middle welfare level.

Impact of CPI change in January 2013/ December 2012 by household welfare levels

The 0.2% rise in consumer prices in January 2013 compared with December 2012 led to a rise of 0.3% in consumer prices for households of the bottom welfare level. The corresponding rises for other income quintiles were 0.2% and 0.1% for the upper and the middle welfare levels, respectively.

Impact of CPI change in January 2013/2012 by household type

A breakdown by household type of the 1.2% rise in consumer prices in January 2013 compared with January 2012, shows that prices advanced by: 1.1% for citizen households, 1.2% for non-citizen households and 2.0% for shared households.

Impact of CPI change in January 2013/ December 2012 by household type

As a result of the 0.2% rise in the CPI in January 2013 compared with December 2012, consumer prices increased by 0.2% for citizen households, 0.1% non-citizen households and 0.3% for shared households.

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.