UAE inflation holds steady amid global uncertainty: Report

Despite global economic turbulence and rising inflationary pressures in advanced economies, the UAE has maintained a stable inflation outlook, reflecting resilience and effective fiscal management.

- Somshankar Bandyopadhyay

According to the International Monetary Fund's (IMF) latest Regional Economic Outlook, the UAE's inflation is projected to average 1.6 per cent in 2025, slightly down from 1.7 per cent in 2024, before inching up to 2.0 per cent in 2026. This trajectory remains comfortably below the central bank's target, signaling continued price stability.

According to Kamco Invest's latest GCC Inflation Update, Dubai's consumer price index (CPI) rose 2.9 per cent year-on-year in September 2025, up from 2.4 per cent in August. The Housing, Water, Electricity, and Gas category-Dubai's most heavily weighted CPI component-was the primary driver, surging 5.8 per cent year-on-year. Other contributors included Recreation and Culture, which rebounded sharply, and modest increases in Education and Food & Beverages. However, the Transport group continued its downward trend, helping to moderate overall inflation.