Abu Dhabi inflation up 1.1%

The Statistics Center of Abu Dhabi (Scad) issued its monthly report on the consumer price index (CPI) and the inflation rate in Abu Dhabi for the month of April 2012 and the first four months of 2012.

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.

Scad’s report finds, the average y-o-y rise in consumer prices for the first four months of 2012 was 1.1 per cent.

The "Food and non-alcoholic beverages" group accounted for 73.9 per cent of the rise in the index, due to increases in the prices of most of the subgroups included in this group.

The highest price increases were in the "Meat" subgroup which advanced by 11.5 per cent, followed by "Fish and seafood" (up 13.8 per cent), "Coffee, tea and cocoa" (9.9 per cent), "Oils and fats" (6.6 per cent) and "Bread and cereals" (3.2 per cent).

The next largest contributor to the overall increase in the CPI over the first four months of 2012 was the "Restaurants and hotels" group, which accounted for 38.7 per cent of the increase in the CPI as the prices of the group climbed 12.2 per cent.

The main group that slowed down the rise in consumer prices during the first four months of 2012 compared with the same period of 2011 was "Housing, water, electricity, gas and other fuels" which contributed a negative 30.7 per cent of the overall change in the CPI index, with the average prices of the group falling by 0.9 per cent during the aforesaid period.

According to Scad’s report, average consumer prices advanced 1.8 per cent in April 2012 compared with April 2011.

The largest individual increase was recorded in the "Restaurants and hotels" group which rose by 18.9 per cent, followed by "Alcoholic beverages and tobacco" (up 9.5 percent) and "Food and non-alcoholic beverages" (up 6.2 per cent).

On the other hand, April prices for the "Housing, water, electricity, gas and other fuels" group retreated 1.3 per cent y-o-y.

Compared with March 2012, average consumer prices increased by 0.2 per cent in April 2012, with "Restaurants and hotels" recording the largest individual rise (4.9 percent) during the said comparison period.

The report further detailed CPI data by welfare levels, revealing an increase of 1.3 per cent in consumer price for households of the bottom and middle welfare quintiles during the first four months of 2012 compared with the same period in 2011.

The corresponding rise for other welfare levels was 0.9 per cent for households of the top quintile and 1.5 per cent for the lower middle welfare quintile.

A comparison of price levels in April 2012 with April 2011 indicates that consumer prices grew by 2.2 per cent for households in the bottom welfare quintile, while prices increased by 1.7 per cent for households of the top welfare level and by 2.0 per cent for households of the middle welfare quintile.

A breakdown of consumer prices in April 2012 compared with March 2012 indicates an increase 0.5 per cent in price levels for households in the bottom welfare quintile.

The corresponding rise was 0.3 per cent for households in the top welfare level and 0.1 per cent for households of the middle welfare level.
Scad’s report also detailed the CPI changes by household type, indicating a rise of 1.3 per cent in consumer prices for national (citizen) and shared households during the first four months of 2012, which also saw prices edge up 0.8 per cent for non-national households.

Consumer prices for national households increased by 2.0 per cent in April 2012 compared with April 2011, while for non-national households and shared households prices increased by 1.5 per cent and 2.6 percent, respectively.

Lastly, consumer prices increased for national households by 0.1 per cent in April compared with March 2012, the corresponding rise being 0.3 percent for non-national households and 0.9 percent for shared households.

Scad has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare.

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.
 

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