Dubai Inflation spikes to five-month high 

(MENAFN - Khaleej Times) DUBAI " Dubai inflation climbed to a five-month high of 0.8 per cent year-on-year in August, fuelled by a surge in transport and food prices, data from the Statistics Centre showed.

Domestic price pressures have been muted this year in Dubai as a debt crisis in the construction sector kept credit growth slow.

Inflation started picking up slowly in May to reach 0.4 per cent on an annual basis in July, still well below a record peak of 10.8 per cent in 2008. Consumer prices rose 0.6 per cent in August, their biggest increase in three months, after a 0.1 per cent increase in the previous month.

Housing and energy costs, which account for nearly 44 per cent of the basket, were flat month-on-month in August, reflecting the weakness in the real estate sector, where a steady inflow of new housing units is keeping prices down. Food and transport prices remained the main factors behind the monthly rise, the data showed.

Food prices jumped 1.8 per cent in August, their sharpest rise since October last year, as consumption rose during the holy month of Ramadan when families enjoy larger and more elaborate evening meals after daylight fasting. Transport costs, the third largest item, soared 2.5 per cent, the biggest increase since May, after a 1.8 per cent spike in July.