According to the SCAD’s report, the average rise in consumer prices for the first half of 2010 was 2.50%, compared to the same period of 2009 as evident from the advance in the CPI for the period January-June 2010 to 117.92 points, up from 115.04 points over the same period of 2009, according to the Statistics Center - Abu Dhabi (SCAD).

SCAD has released its Monthly Report of the Consumer Price Index for the month of June 2010, using the price data of 2007 as the base year. For the first time, the bulletin reports CPI data according to the types and levels of welfare of households.

The report also reveals that the percentage year-over-year rise in the CPI for June 2010 was 3.38%, as the index accelerated from 114.60 points in June 2009 to 118.47 points in June 2010.

The report shows that percentage month-to-month rise in the CPI for June 2010 compared to May 2010 was 0.21%, from 118.22 points in May 2010 to 118.47 points in June 2010.

Analyzing the CPI by levels of household welfare, the report reveals that the surge in consumer prices during the first half of 2010 by 2.50% compared to the same period in 2009 led to a rise of 1.8% in consumer prices for households of the bottom welfare quintile. Compared to other welfare levels, consumer prices grew by 2.41% for households of the top quintile, while the rise was largest for the upper middle welfare quintile (2.73).

SCAD’s report also provides a break down of CPI results by type of household, in which the report shows that the 2.50% year-over-year rise in consumer prices for the first half of 2010 pushed up consumer prices for national households by 1.82%, compared to 3.50% for non-national households and 1.72% for collective households.

Consumer price index by households’ welfare levels: SCAD emphasizes the significance of the CPI detailed by welfare levels in demonstrating how changes in the index impact segments of varying income levels, thus enabling comparison between them and making it possible to for decision makers to formulate appropriate policies in regard to prices, taxation and wages. According to this 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. The five welfare levels are: bottom, lower middle, middle, upper middle and top quintiles.

Consumer price index by type of household: As pointed out earlier, the report also compiles the CPI by type of household, dividing the households in the population into three types, namely, national, non-national and collective households, as defined in as defined in the results of the Household Income and Expenditure Survey (2007-2008). This approach can reveal how changes in consumer prices affect each type of household.

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