Islamic Finance vs. Conventional Finance in UAE
We are living in an age where everything is linked to banking and financing. From…
Yes, since the price hike in petrol last month (August), the inflation in the UAE has rose to whooping 4.9%, which has made the living cost even higher than it was before.
According to official stats, the annual inflation in Abu Dhabi rose to 6.1%, which is highest since 2008, while the inflation in Dubai is monitored to be at 4.4%. Transportation cost rose 12% in Abu Dhabi and 10% in Dubai, and all of this happened because the state changed the procedure through which it calculates the subsidized fuel-prices in Dubai.
Now, the fuel prices in UAE are determined according to the avg. of the international benchmarks of the previous month. The price of 95 Octane petrol rose from 1.73 AED to 2.14 AED in August, which is a 29% hike.
Although he price of Diesel, fell 29% to 2.05 / Liter, it does not affect the over-all country-wide inflation as it doesn’t affect the consumer price inflation measure. Since the fuel prices have come down a little in September, the next month`s inflation figures are estimated to be a little on lower side as compared to October.