Dubai inflation eases to 5.03% in September as fuel costs remain elevated

Dubai's consumer price index rose 5.03 per cent year-on-year in September 2026, according to figures released by the Dubai Data and Statistics Establishment on 13 October. The rate was lower than the 5.54 per cent recorded in August and the 5.7 per cent peak reached in June. On a monthly basis, the index fell 0.05 per cent in September.

Transport costs drive annual price growth#

The transport division contributed most to the annual inflation figure, climbing 14.7 per cent year-on-year in September. Fuel and lubricants for personal transport rose 37.52 per cent, while passenger transport by air increased 13.48 per cent. The transport segment accounts for 9 per cent of Dubai's consumer price index basket. The UAE evaluates fuel prices monthly based on global market movements, having lifted subsidies in 2015. Petrol prices in the Emirates rose for a third consecutive month in October.

Monthly decline driven by airfares and holiday packages#

Airfares fell 23.44 per cent month-on-month in September, and holiday packages dropped 12.47 per cent from the August level. The declines offset increases in other categories to produce the 0.05 per cent monthly decrease in the overall index. Food and drinks rose 8.05 per cent year-on-year, while housing, water, electricity, gas and domestic fuel increased 6.23 per cent.

Non-oil sector maintains growth trajectory#

Dubai's Purchasing Managers' Index stood at 54.5 in September, up from 54.1 in August, indicating the fastest pace of growth in 2026, according to S&P Global Markets Intelligence. The increase was driven by a sharp rise in output as new orders rose and employment in the emirate expanded. Tourism, retail and property sectors have held up, with non-oil private sector business activity maintaining a solid expansion despite regional headwinds.