The average rise in consumer prices for the first five months of 2011 was 2.5 per cent year-on-year reaching 120.8 points from 117.8 points, in the same period last year, said Statistics Centre Abu Dhabi in its monthly report.

In the January-May period, the biggest increase was noticed in the transport costs that grew 9.9 per cent, followed by an eight per cent increase in food items.

The food and beverages group, which according to the Statistics Centre Abu Dhabi, is accounted for 52.7 per cent to the rise in the CPI, was triggered by the increases in the prices of meat, which went up by 14 per cent, closely chased by coffee prices that rose 12 per cent, in the five months period ending May 2011, against the same period a year ago.

Fruits prices climbed 11 per cent in the January-May period comparing with the prices level in the same period a year ago. The vegetables in the first five months were eight per cent expensive, mineral water and fruit juices prices rose nine per cent comparing with the prices in the same period last year, according to SCAD.

Commenting on the rise in food prices, an executive at a retail chain, who asked not be quoted, attributed the increases to a weakening US dollar against global currencies, which has put pressure on the UAE dirham, in the past 18-months. Other contributing factors that affected the food prices include oil price hikes in grain producing nations, which transferred the impact onto the consumer in nations like the UAE.

In May, housing and furnishing items rose 6.6 per cent year-on-year, according to Statistics Centre Abu Dhabi.

The year-on-year rise of 2.5 per cent in consumer prices for the first five months of the year contributed to a rise in consumer prices for national households by 2.5 per cent, and by 2.2 per cent for non-national households and four per cent for collective households.

The rise has led to an increase of 4.4 per cent in consumer prices for households of the bottom welfare group over the same period of comparison. As for the other welfare levels, consumer prices grew by 1.8 per cent for households of the top welfare group and by 2.5 per cent for the upper middle welfare group.

Dubai inflation remains stable

Meanwhile, Dubai’s monthly consumer price inflation rate rose by 0.04 per cent in May 2011 compared to last month April, a report released by the Dubai Statistics Centre (DSC) showed on Sunday.

Inflation rate in transport jumped to 0.88 per cent, food and non- alcoholic beverages up 0.53 per cent, while inflation declined by 0.24 per cent in housing, water, electricity, gas and fuel.

Commodities and other diversified services’ inflation was down by 0.16 per cent, restaurants and hotels fell 0.08 per cent and telecommunications down by 0.08 per cent. Prices of other major expenditure groups remained unchanged with those of April 2011.

As for the annual inflation in Dubai, the consumer and services’ price in Dubai continued to rise and estimated at 0.44 per cent in May 2011 compare to same month in 2010.

The major spending prices went up as follows; transport 6.70 per cent, restaurants and hotels 4.64 per cent, food and non-alcoholic beverages 3.91 per cent, Education 3.41 per cent, health 3.34 per cent, alcoholic drinks and tobacco 2.15 per cent, other services and diversified commodities 2.14 per cent, household gadgets and furniture and repairs 2.12 per cent, and telecommunications 0.70 per cent. Whereas the following expending groups declined as housing, water, electricity, gas and fuel down by 3.29 per cent, garments and footwear 1.96 per cent. — business@khaleejtimes.com