The inflation rate in Dubai dropped to 3.32% in July, the lowest level since the beginning of the year. The housing, utilities, and fuel sector saw a year-on-year increase of 6.76% in July, while food and beverage prices increased by 2.46%. Clothing and footwear prices rose by 0.96%, and the tobacco sector registered a 3.63% drop. The recreation, sports, and culture sector experienced a decrease of 2.42%, and the information and communication sector posted a 2% decline in prices. Dubai's Consumer Price Index (CPI) decreased marginally to 111.56 points in July. The city's economy expanded by 3.2% annually in the first quarter of 2024. These figures have led to speculation about a potential rate cut by the Central Bank of the UAE [92c73270].
The drop in inflation in Dubai has raised speculation about a rate cut by the Central Bank of the UAE. The US inflation rate reached its lowest level in over three years in July, leading to the possibility of an interest rate cut by the US Federal Reserve in September. If the US Federal Reserve does decide to cut interest rates, it could influence the Central Bank of the UAE's decision on whether to implement a rate cut as well [92c73270].