Consumer Price Index (CPI) in Abu Dhabi advanced 1.3 percent to 122.5 points in the first seven months of 2012 compared with 121.0 points over the same period in 2011. This rise reflects the combined outcome of upward and downward changes in the prices of the various goods and services that compose the consumer basket, according to Statistics Center - Abu Dhabi (SCAD).

SCAD issued today its periodic report on the CPI and the inflation rate in the Emirate of Abu Dhabi for the month of July and the first seven months 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.

Largest contributors to the CPI rise: The single largest contributor to the rise in consumer prices during the first seven months of 2012 was the "Food and non-alcoholic beverages" group, which accounted for 61.3 percent of the rise in the index during the aforesaid period, due to increases in the prices of most of the subgroups included in this group, namely, the "Meat" subgroup, which surged by 10.2 percent, "Fish and seafood" (up 8.4 percent), "Coffee, tea and cocoa" (up 9.3 percent), "Oils and fats" (up 6.6 percent) and "Milk, cheese and eggs" (up 2.8 percent).

The next largest contributor to the overall y-o-y rise in consumer prices over the first seven months of 2012 was the "Restaurants and hotels" group, which accounted for 44.2 percent of the increase in the CPI as the group’s prices climbed 16.1 percent.

The "Furnishings and household equipment and routine maintenance of houses" advanced 3.0 percent y-o-y over the course of the first seven months of 2012, contributing 11.1 percent of the overall rise in consumer prices between the two periods compared. The key increases within this group were recorded in the "Glassware, table ware and household items" and the "Goods and services used in routine household maintenance system" subgroups, which advanced 4.8 percent and 3.3 percent, respectively.

Education contributed 12.5 percent of the y-o-y rise in consumer prices during the first seven months of 2012.

The "Transport" group contributed 6.3 percent of the rise in consumer prices during the first seven months of 2012, compared with the same period of 2011, reflecting an overall change of 0.8 percent as a result of a range of mixed changes in the subgroups falling under this expenditure group, with the key rise (0.6 percent) observed in the "Operation of personal transport equipment" as the price of "Spare parts and accessories of personal transport equipment advanced 6.8 percent.

Housing group retreats: The main group that slowed down the rise in consumer prices during the first seven months of 2012 compared with the same period of 2011 was "Housing, water, electricity, gas and other fuels" which contributed -38.3 percent of the overall change in the CPI index, with the average prices of the group falling by 1.3 percent between the periods compared. 

Consumer prices in July 2012/2011 As SCAD’s report finds, average consumer prices increased by 1.4 percent in July 2012 compared with July 2011, as the CPI advanced to 123.4 points in July 2012, up from 121.7 in July 2011, representing the combined outcome of a range of upward and downward changes in the consumer basket items. The most significant individual increase in consumer prices during the aforesaid two periods of comparison was observed in the "Restaurants and hotels" group, which soared 22.4 percent, followed by "Alcoholic beverages and tobacco" (up 10.7 per cent), "Furnishings and household equipment and routine maintenance of houses" (up 4.3 percent) and "Food and non-alcoholic beverages" (up 3.5 per cent). On the other hand, the prices of the "Housing, water, electricity, gas and other fuels" group decreased by 2.0 percent.

Consumer prices in July/June 2012 As for month-over-month inflation, average consumer prices increased by 0.3 percent in July 2012 compared with June 2012 as the CPI advanced from 123.0 points in June 2012 to 123.4 points In July 2012. The single largest increase was recorded in the "Miscellaneous goods and services", which advanced 2.3 percent and the "Food and non-alcoholic beverages" group, which grew 1.0 percent between the aforesaid comparison periods.

Impact of CPI change in first seven months of 2012/2011 by household welfare levels Detailed by welfare levels, the 1.3 y-o-y rise in consumer prices over the first seven months of 2012 pushed up prices for households of the "bottom" welfare quintile by 1.5 percent for same period of comparison. The corresponding rise for other welfare levels was 1.2 percent for households of the top quintile, 1.4 for households of the middle quintile and 1.6 per cent for the lower middle welfare level.

Impact of CPI change in July 2012/2011 by household welfare levels According to SCAD’s report, the 1.4 rise in consumer prices in July 2012 compared with July 2011, when detailed by welfare levels, is shown to have impacted consumer prices for households of the bottom welfare by 1.7 percent for the same period of comparison. Meanwhile prices increased by 1.4 percent for households the top and the middle welfare levels.

Impact of CPI change in July/June 2012 by household welfare levels The 0.3 percent rise in consumer prices in July compared with June 2012 increased prices by 0.3 percent for households of the middle, upper middle and top welfare levels.

Impact of CPI change in first seven months of 2012/2011 by household type A breakdown by household type of the 1.3 change in consumer prices during the first seven months of 2012, compared with the same period in 2011 shows that prices advanced by: 1.5 percent for national households, 1.0 percent for non-national households and 1.7 percent for shared households.

Impact of CPI change in July 2012/2011 by household type As a result of the 1.4 rise in consumer prices in July 2012 compared with July 2011, consumer prices increased by 1.5 percent for national households, 1.2 percent for non-national households and 2.2 percent for shared households between two periods compared.

Impact of CPI change in July/June 2012 by household type The 0.3 percent rise in consumer prices in July compared with June 2012 increased prices by for national and non-national households by 0.3 percent for the same period of comparison.

SCAD’s CPI report compiled in conformity with the highest technical standards: In preparing its monthly CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field, using a broad and highly representative basket of goods and service, to ensure accuracy in the calculation of the index, which is the sole officially authorized source for monitoring changes in prices and inflation in the Emirate of Abu Dhabi.

SCAD has recently developed the computing of the CPI so that it is compiled according to households’ types and levels of welfare. As for the welfare level approach, 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.

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