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In 2020, the average consumer price index (CPI) in the United Arab Emirates (UAE) was 106.73, implying a 6.7 percent increase in the price level compared to the base year of 2014. This was a slight year-on-year decrease, as the country’s 2019 CPI amounted to 109 index points.

Consumer price index (CPI)

The consumer price index measures the changes in prices for a representative basket of goods and services, divided into several major categories, including food and beverages, housing, medical care, and education. In 2020, the CPI of beverages and tobacco in the UAE was estimated at 204.91 points, the highest among all categories of consumer spending that year. Meanwhile, the CPI for housing was around 100.63 index points that year.

Inflation rate

The CPI is a frequently used indicator for inflation, as a positive change in the general price level suggests rising costs of living and declining purchasing power. In 2022, the nation’s inflation rate was projected to increase by nearly four percent compared to the previous year. Recent surges in the global inflation rate are likely attributable to accelerating oil prices, induced by the 2022 energy crisis.