In 2019, the inflation rate of the United Arab Emirates was at 1.93 percent compared to the previous year. For 2018, estimates show a sharp increase of over 3.07 percent, before inflation slumps back to around 2 percent in 2029.

Oil is keeping everything afloat

The economy of the United Arab Emirates heavily relies on oil and its respective revenues. The UAE possess vast stable oil reserves, and crude oil production is steadily increasing. Naturally, oil exports – mostly to the Asia-Pacific region – are the main economic driver, and the industrial and services sectors have divided generation of GDP almost evenly among themselves. Oil has caused the UAE economy to thrive and caused an impressive trade surplus just a few years ago, before a dramatic (but still not overly concerning) slump.

Oil is dragging everything down

When oil prices decreased, so did the trade surplus, and inflation mirrored this by skyrocketing from around one percent to over four percent in three years. Another three years later, in 2018, it spiked again at over 3.5 percent – another response to dropping oil prices. Diversifying the economy is one way for the UAE to diminish oil’s monopoly; tourism has been a growing industry over the last few years and might just stabilize inflation if another oil price slump hits.

The Consumer Price Index in the United Arab Emirates increased 0.54 percent in February of 2025 over the previous month. This dataset provides the latest reported value for - United Arab Emirates Inflation Rate MoM - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

After recording negative consumer price inflation in 2019 and 2020, the UAE saw a marginal increase in consume price inflation in 2021. However, this figure is expected to significantly increase in the following two years. By 2023, the consumer price inflation is expected to rise by 3.6 percent, roughly matching the average between 2000 and 2018. UAE consumer price inflation vs consumer price index Consumer price inflation, as opposed to the consumer price index, is the overall increase in the price of goods and services in a particular economy. The consumer price index can measure the inflation rate of specific goods or services. For example, the consumer price index amongst various categories in 2020 revealed that tobacco and beverages saw the most significant price increases. Consumer price inflation in the UAE Although the UAE average consumer price inflation between 2000 and 2018 was significantly higher than the GCC average, it performed remarkably better than other member states in the subsequent three years. Nevertheless, most countries in the GCC, like the UAE, often fare better when it comes to inflation rate change in the Middle East and North Africa.

The statistic shows the inflation rate in the United Arab Emirates in 2019, broken down by Emirati region. The inflation rate for the emirate of Sharjah, was about minus 2.99 percent as of that year.

Inflation, GDP deflator: linked series (annual %) in United Arab Emirates was reported at --1.3042 % in 2023, according to the World Bank collection of development indicators, compiled from officially recognized sources. United Arab Emirates - Inflation, GDP deflator: linked series (annual %) - actual values, historical data, forecasts and projections were sourced from the World Bank on March of 2025.

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.

Consumer Price Index CPI in the United Arab Emirates decreased to 113.37 points in January from 113.38 points in December of 2024. This dataset provides - United Arab Emirates Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2020, the consumer price index (CPI) in the United Arab Emirates (UAE) was the highest for beverages and tobacco, amounting to nearly 205. Since 2016, the consumer price index for beverages and tobacco has significantly increased from 102 to 205.

Consumer price index and inflation

The consumer price index is an economic indicator that measures the average changes in the price of consumer goods and services over time. The consumer price index helps in identifying periods of inflation and deflation. In 2020, the inflation rate in the Gulf Cooperation Council varied among member states; the United Arab Emirates had a negative inflation rate of 2.1 percent.

Inflation in the United Arab Emirates

The negative inflation rate in the UAE resulted from consumers' high purchase power due to the low unemployment rate and the government's effectiveness in trade and policy. In 2021, the United Arab Emirates had one of the lowest inflation rates in the world.

Cost of food in the United Arab Emirates decreased 0.24 percent in February of 2025 over the same month in the previous year. This dataset provides the latest reported value for - United Arab Emirates Food Inflation - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

-1.3 (%) in 2023. Inflation as measured by the annual growth rate of the GDP implicit deflator shows the rate of price change in the economy as a whole. The GDP implicit deflator is the ratio of GDP in current local currency to GDP in constant local currency.

This dataset provides values for INFLATION RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

CPI Housing Utilities in the United Arab Emirates increased to 118.70 points in February from 117.90 points in January of 2025. This dataset provides - United Arab Emirates Cpi Housing- actual values, historical data, forecast, chart, statistics, economic calendar and news.

In 2023, the consumer price index in the United Arab Emirates dropped to 3.3 percent. This was a drop from the previous year when the CPI was 4.8 percent, but still much higher than its all-time low of zero percent in 2021.

In 2023, food and beverage inflation the United Arab Emirates increased by 3.8 percent over the previous year. The previous year had the largest increase in food and beverage inflation in the period between 2019 and 2023, at 7.2 percent.

The statistic shows the consumer price index (CPI) for education in the United Arab Emirates from 2012 to 2020. The 2020 consumer price index of education in the country was 119.58 implying an 19.58 percent increase in the price level.

Of the major developed and emerging economies, China had the lowest inflation rate at 0.1 percent in December 2024. On the other end of the spectrum, the inflation rate in Russia stood at nearly 10 percent. The country's inflation rate increased sharply after the country's President, Vladimir Putin, decided to invade Ukraine, declined somewhat in 2023, before increasing slowly again since. The rate of inflation reflects changes in the cost of a specified basket containing a representative selection of goods and services. It is derived from the consumer price index (CPI).

This scatter chart displays inflation (annual %) against fossil fuel energy consumption (% of total) and is filtered where the country is the United Arab Emirates. The data is about countries per year.

In 2020 post the COVID-19 pandemic, Saudi Arabia had a change in the year-to-year inflation rate of about 3.4 percent. Among the various regions of the world, it was predicted that the Middle East and North Africa (MENA) region would have the highest inflation rate in 2021. Inflation on the rise worldwide Inflation refers to the increase in the prices of goods and services in an economy. Global inflation has been on the rise due to many factors, including supply chain interruptions brought about after major COVID-19 lockdowns. The global inflation rate was expected to peak in 2022 compared to the previous 20 years. Inflation in MENA Inflation comes with varied impacts. It increases the prices of goods and services and subsequently reduces the purchasing power. In 2021, the consumer price index (CPI) of tobacco and narcotics increased to nearly 135 in Kuwait. In the United Arab Emirates (UAE), beverage and tobacco prices have similarly increased since 2016.

This scatter chart displays inflation (annual %) against female population (people) and is filtered where the country is the United Arab Emirates. The data is about countries per year.

The average inflation rate in Qatar was forecast to increase between 2024 and 2029 by in total one percentage points. This overall increase does not happen continuously, notably not in 2029. The inflation is estimated to amount to 1.96 percent in 2029. Following the definitions provided by the International Monetary Fund, this indicator measures inflation based upon the year on year change in the average consumer price index. The latter expresses a country's average level of prices based on a typical basket of consumer goods and services. Depicted here is the year-on-year change in said index measure, expressed in percent.Find more key insights for the average inflation rate in countries like United Arab Emirates, Saudi Arabia, and Lebanon.