Saturday, March 19, 2011

Compared with February 2010 Statistics Abu Dhabi: Inflation at 3.1% in Consumer Prices in February 2011



Statistics Center - Abu Dhabi issued today its monthly report on the consumer price index (CPI) and the inflation rate in the emirate of Abu Dhabi. The report analyzes the CPI calculations for the month of February 2011 with the year 2007 fixed as the base year, the report also details CPI results by welfare levels and types of households.

The report reveals that the CPI increased by 3.1% in February 2011 compared with the same month in 2010, rising from 117.6 points in February 2010 to 121.2 points in February 2011.
The report also indicates that the average rise in consumer prices for the first two months of 2011 was 3.3%, compared with the same period of 2010, as shown by the increase in the CPI from 117.3 points to 121.1 points over this period.
A month-to-month comparison shows that the CPI edged up 0.1% to 121.2 points in February 2011, up from 121.0 points in January 2011.
Detailed by its impact according to household type, the report finds that the rise in consumer prices during the first two months of 2011 by 3.3% above the price levels of the same period in 2010 resulted in a surge of 4.9% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.5% for households of the top quintile and 3.3% for the upper middle quintile.

The 3.3% year-on-year rise in consumer prices for the first two months of 2010 pushed up consumer prices for national households by 3.3%, compared with 3.1% for non-national households and 4.5% for collective households.

The first two months of 2011 / 2010
SCAD’s report finds that, during the first two months of 2011, average consumer prices rose by 3.3% compared with the same period of 2010, with the CPI for the first two months of 2011 at 121.1 points, compared with 117.3 points for the same period of 2010. This rise in prices reflects the net change in the consumer basket prices (resulting from upward and downward movement) during the two periods compared.
SCAD affirms that rises in the CPI do not necessarily correspond to higher prices for all the goods and services that make up the consumer basket, nor do they mean that all goods and services have increased by the same percentage (3.3% in this case); for there are goods and services for which prices have risen at rates above the overall rate and others with rates of increase below the general average. There are also goods and services for which prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during the first two months of 2011 compared with the same period in 2010 produced an overall increase in prices of 3.3%.

Top Expenditure Groups
With regard to the twelve major expenditure groups, as per the international classification, i.e. "Classification of Individual Consumption according to Purpose (COICOP)", SCAD’s report shows that the "Food and non-alcoholic beverages group" was the highest contributor to the rise that occurred in the first two months of 2011 as it accounted for 50.4% of the rise in the index, due to increases in the prices of most of the subgroups included in this group.
 The next highest contributor to the overall year-on-year increase in the CPI over the first two months of 2011 was the "housing, water, electricity, gas and other fuels" group having accounted for 35.9% of that increase. This contribution resulted from an increase of 3.0% in the prices of this group and due to the group’s sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main cause underlying the increase in the average price of this group was a rise of 3.4% in house rents, which make up 87.7% of the total weight of the group.

Bottom Expenditure Groups
The report also reveals that among the main groups that slowed down the rise in consumer prices during the first two months of 2011 compared with the same period of 2010 was the "clothing and footwear," group, which contributed (-41.6%) to the overall change in prices. This was due to a retreat in the prices of this group by 14% as a result of a drop in the prices of the “clothing” and “footwear” subgroups by 14% and 14.3%, respectively during the specified period.
February 2011/ 2010
SCAD’s report indicates that the average consumer prices increased by 3.1% in February 2011 compared with February 2010, with the CPI at 121.2 points in February 2011 and 117.6 points in February 2010. This increase in prices is due to the net movement (increases and decreases) of consumer prices during the mentioned months.

Upward/Downward Price Movements of Expenditure Groups in Feb. 2011/ Feb. 2010
The report shows that main groups whose prices have increased in the month of February 2011 compared to February 2010 were: the “Transport” group (up 11.0%), followed by “Food and non-alcoholic beverages” (up 10.0%). In addition, prices of “Furnishings, household equipment and routine household maintenance” increased by 8.1%, “Education” prices increased by 4.3%, prices of the “Housing, water, electricity, gas and other fuels” group increased by 3.0%.
Partly offsetting these price increases were “Clothing and footwear” for which prices decreased by 14.1% as a result of decreasing prices of the “clothing” subgroup by 13.7% and the “footwear” subgroup by 19.9%.

February 2011/January 2011
SCAD’s report further indicates that average consumer prices increased by 0.1% in February 2011 compared with January 2011, as the CPI rose from 121.0 points in January 2011 to 121.2 points in February 2011. This overall increase in the prices between the two months reflects the net movement (increases and decreases) of consumer prices during the periods compared.

The “Food and non-alcoholic beverages” group (up 0.8%) recorded the largest price increase in February 2011 compared with January 2011. This increase was a result of the rises and falls that have occurred in the sub-groups’ prices. The prices of the “Fish and seafood” sub-group decreased by 10.6%, and “fruits” by 4%, while “meat” prices grew by 3.8%, “bread and cereals” by 0.4%, and “oils and fats” by 0.1%.

Household Welfare Level for February 2011
The report reveals a rise in consumer prices during the first two months of 2011 by 3.3% above the price levels of the same period in 2010 resulted in a surge of 4.9% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.5% for households of the top quintile, 3.3% for the upper middle quintile and 4.3% for the lower middle quintile.

SCAD’s report further indicates that the rise in consumer prices in February 2011 by 3.1% compared with February 2010 caused a rise in the consumer prices for the households in the “Lower Class” welfare level of 4.8% during the same period, while prices increased for households in the “Upper Class” welfare level by 2.4%. The prices for households in the “Middle Class” increased by 3.7%. 
 The rise in consumer prices in February 2011 by 0.1% compared with January 2010 caused a rise in consumer prices for households in the “lower Class” welfare level by 0.1%, and a 0.2% rise in the prices of all households in the “Lower- Middle Class”, “Middle Class”, and “Upper-Middle Class”, while the prices of the “Upper Class” increased by 0.1%. 

Type of Household for February 2011
The report shows that the 3.3% year-on-year rise in consumer prices for the first two months of 2010 pushed up consumer prices for national households by 3.3%, compared with 3.1% for non-national households and 4.5% for collective households.

The rise in consumer prices in February 2011 by 3.1% compared with February 2011 caused a rise in consumer prices for national households by 3.1% during the same period. Prices for non-national households increased by 2.9% while prices for the collective households increased by 4.3%.

The rise in consumer prices (up 0.1%) in February 2011 compared with January 2011 caused a rise in consumer prices for national households (up 0.1%), and a rise in prices for non-national households (up 0.1%), while prices of the collective households increased by 0.1% during the two specified months. 



SCAD’s CPI report in conformity with the highest technical standards:

In preparing its 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’s Price Indices Section 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.
To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate.


About Statistical Center-Abu Dhabi (SCAD)

Statistics center-Abu Dhabi (SCAD) was established in 2008 in accordance with Law No. (7), to develop and organize statistical work in the Emirate of Abu Dhabi in particular and the United Arab Emirates in general. SCAD’s purpose is to produce statistical information that is consistent with the emirate’s orientation towards sustainable development and strategic plans under the supervision and with full support of the Executive Council of the Emirate of Abu Dhabi.


Being the of the official statistical data collection agency in the Emirate of Abu Dhabi, the center assumes the functions of preparing the statistical plans and programs that serve the emirate’s wider development programs, conducting statistical surveys across the emirate. SCAD is also responsible for the collection, classification, storage, analysis and dissemination of official statistics and the release of the results of social, demographic, economic, environmental and cultural surveys.


The activities of the Center will encompass all areas relating to social conditions in accordance with relevant international standards and ethics, such as independence, professionalism, impartiality, objectivity, confidentiality, cost effectiveness and quality of statistics.



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