SCAD issues its monthly report on CPI and inflation rate in Abu Dhabi

The report analyzes the CPI calculations for the period 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 the first two months of 2013
SCAD indicated that the inflation rate of consumer prices was 1.1% during the first two months of 2013 compared with the same month in 2012, as shown by the increase in the CPI to 123.3 points during first two months of 2013, up from 122.0 points for the same period of 2012, reflecting the combined outcome of the upward and downward changes in the prices of the consumer basket items between the two periods compared.

As the report finds, the 'Restaurants and hotels' group accounted for 44.9% of the overall increase, due mainly to an increase of 13.1% in the prices of this group.

The next largest contributor to the overall increase in the CPI over the first two months of 2013 was the 'Transport' group, which advanced 2.7%, accounting for 23.5% of the overall increase occurring during the first two months of 2013, compared with the same period in 2012.

The prices of 'Food and non-alcoholic beverages' group contributed 19.1% of the net change in consumer prices during first two months 2013 compared with the same period of 2012.

Rises in the 'Food and non-alcoholic beverages' group resulted of increases in the prices of most subgroups falling within this group, including the prices of 'Vegetables', which increased by 10.9%, 'Food products not elsewhere classified' by 5.4%, 'Coffee, tea and cocoa' and 'Fruit' by 5.0% each, and 'Oil and fats" by 2.0%.

Between the same comparison periods, the prices of 'Furnishings, household equipment and routine household maintenance' grew by 1.8%; contributing 8.1% of the net increase all expenditure groups.

The 'Housing, water, electricity, gas and other fuels' group was among the main groups that slowed down the rise in consumer prices during the first two months of 2013 compared with the same period of 2012. The group detracted 38.5% from the overall change in the CPI, as the group's prices declined by 1.1%.

Consumer prices in February 2013/2012
SCAD indicated that consumer prices inflation was 1.0% in February 2013 compared with the February 2012, as shown by the increase in the CPI to 123.2 points during February 2013, up from 121.9 points in February 2012, reflecting the combined outcome of the upward and downward changes in the prices of the consumer basket items between the two periods compared.

The largest rises in consumer prices during February 2013 compared with February 2012 were observed in the 'Restaurants and hotels' and 'Alcoholic beverages and tobacco' groups which grew 11.7% each, followed by 'Clothing and footwear' (up 3.0%) 'Furnishings, household equipment and routine household maintenance' (up 1.7%). Over the same period, however, prices of the 'Housing, water, electricity, gas and other fuels' group retreated by 1.1%.

Consumer prices in February/January 2013
Average consumer prices decreased by 0.2% in February 2013 compared with January 2013. This overall decrease in prices between the two months reflects the net movement of consumer prices between the two months compared.

Impact of CPI change in the first two months of 2013/2012 by household welfare levels
Detailed by household welfare levels, the 1.1% rise in consumer prices during the first two months of 2013 compared with the same period in 2012, resulted in a surge of 1.7% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 1.1% for households of the top quintile and 1.0% for those of the middle quintile.

Impact of CPI change in February 2013/2012 by household welfare levels
The 1.0% rise in consumer prices in February 2013 compared with February 2012, has impacted consumer prices for households of the bottom welfare levels by a rise of 1.8% for the same period of comparison. Meanwhile prices increased by a 1.0% for households of the top quintile and by 0.9% for households of the middle welfare level.

Impact of CPI change in February/January 2013 by household welfare levels
The 0.2% fall in consumer prices in February 2013 compared with January 2013 led to a proportionate drop of 0.2% in consumer prices for households of the bottom and the top welfare levels. The corresponding drop for the middle welfare level was 0.3%.

Impact of CPI change in the first two months of 2013/2012 by household type
The 1.1% rise in consumer prices for the first two months of 2013 compared with the same period of 2012 pushed up consumer prices for citizen households by 0.9%. The corresponding rise was 1.2% for non-citizen households and 2.1% for share households.

Impact of CPI change in February 2013/2012 by household type
A breakdown by household type of the 1.0% rise in consumer prices in February 2013 compared with February 2012, shows that prices advanced by: 0.7% for citizen households, 1.2% for non-citizen households and 2.1percent for shared households.

Impact of CPI change in February/January 2013 by household type
As a result of the 0.2% drop in the CPI in February 2013 compared with January 2013, consumer prices increased by 0.3% for citizen households and 0.2% for non-citizen households and 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.