Residents of UAE compromise on household expenses to combat inflation

  • July 15, 2022
Residents of UAE compromise on household expenses to combat inflation

According to research findings, UAE citizens are feeling the sting of rising costs as inflation eats away at household budgets around the world and may continue to reduce their spending in the future.

According to the most recent YouGov Realtime study, which examines how inflation has affected people’s cost of living in the UAE, the areas where they have reduced household spending, and their future spending intentions, residents are most likely to cut back on eating out and purchasing electronics and gadgets.

According to data gathered online from 1,006 urban respondents in the UAE for the study, the majority of residents (83%) believe their cost of living has increased to some extent compared to 12 months ago, with more than half (53%) saying it has increased significantly and 30% saying it has increased slightly.

According to the most recent data from the Federal Competitiveness and Statistics Centre, the UAE’s inflation jumped 3.35 percent in the first quarter of this year amid increasing prices in 11 major industries (FCSC).

The country’s Consumer Price Index (CPI) increased significantly from 99.37 points in Q1-21 to 102.70 points in Q1-22.

Transportation costs increased by 22%, 6.87%, 5.4%, and 4.07%, respectively, as did food and soft drink prices, hotels and restaurants, and tobacco.

“Transport prices, which rose 28.8% over the previous year in April and accounted for around half of overall inflation, have been the leading cause of inflation in Dubai in recent months. According to Khatija Haque, head of research and chief economist at Emirates NBD, food prices (8.6 percent higher year-over-year) were the second biggest driver of inflation in April, followed by costs associated with leisure and culture as well as restaurant and hotel prices. Despite the rising costs, the YouGov research found that 2 in 5 (or 39% of respondents) are optimistic and anticipate that their household’s financial status will improve in the future. In contrast, only 21% of respondents think their financial situations will get worse, and just 29% believe they will stay the same (27 per cent). Young adults aged 25 to 34 are most