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UAE inflation rises 1.8% year on year in February

Consumer prices rose 1.75% year on year in February as the CPI climbed to 119.29 points, on higher education, housing, food costs.

Cost of food and soft drinks in the UAE droppe dy by 0.03 per cent to 140.82 points from 141.25 points in February. — KT photo by Shihab

Annual inflation climbed to 1.8 per cent in February, its highest level since October 2010, from 1.5 per cent in the previous month, data from the National Bureau of Statistics showed on Thursday.

Housing and utility costs, which account for over 39 per cent of consumer expenses, rose two per cent year-on-year, the fastest pace since April 2009, and 0.2 per cent month-on-month in February.

Food and soft drink prices, which account for nearly 14 per cent of the basket, increased 2.7 per cent on an annual basis but fell 0.3 per cent from the previous month.

Analysts polled by Reuters in January forecast average inflation in the UAE would accelerate to 2.5 per cent in 2014 and 2.7 per cent in 2015 from 1.1 per cent in 2013, which was the highest level since 2009, says Reuters newswire.

At the emirate level, highest inflation of 0.42 per cent was monitored in Dubai, followed by Abu Dhabi where it was in the range of 0.22 per cent.

Cost of food and soft drinks dropped in February by 0.03 per cent to 140.82 points from 141.25 points, in the country. In Abu Dhabi the decline was 0.60 per cent in the month while in Dubai it was 0.73 per cent.

— haseeb@khaleejtimes.com