RIYADH: According to official statistics issued by the Dubai Statistics Centre, the annual inflation rate in Dubai decreased in March, reaching its lowest level since October 2024. The emirate’s inflation rate decreased from 3.15 percent in February to 2.79 percent in March. A stronger deflation in food and beverage costs, which fell 3.34 percent year-over-year after declining 0.85 percent the month before, was the main cause of the reduction.
In comparison to other major cities in the area, Dubai continues to post comparatively mild inflation. The government’s aggressive efforts to preserve price stability and promote economic growth are credited by analysts with this tendency. Dubai’s economy is nevertheless strong despite ongoing inflationary pressures from across the world, thanks to a variety of industries like commerce, real estate, and tourism.
In 2025, the UAE Central Bank projects a national inflation rate of 2%, which is much lower than the worldwide average. In the upcoming year, non-tradable elements of the consumer basket are anticipated to be the primary drivers of price changes. Other important categories also showed ongoing deflation, according to the March statistics. The monthly deflation rate for food and beverage prices was 0.31 percent, which was somewhat higher than the 0.21 percent rate for February.
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