Abu Dhabi – Mubasher: Inflation in Abu Dhabi surged 4.7% year-on-year in January on the back of the value-added tax (VAT), according to a report released by emirate’s Statistic Centre.
The Consumer Price Index (CPI) stood at 112.7% in the first month of 2018 against 107.6% in the year-ago period, while rose 3% month-on-month in January 2018, the Statistic Centre’s data showed.
The growth in Abu Dhabi’s inflation rates can be attributed to the introduction of a 5% VAT at the beginning of this year, the Abu Dhabi Department of Economic Development (DLD) revealed.
The prices of the transportation group soared 38.5% year-on-year in January, while the prices of the miscellaneous goods and services group surged 17.8% year-on-year in the same month.
“Some of the groups that are subject to the tax witnessed a change in its prices that was less than the tax rate, as the case with the telecommunications group, and the fixtures, house equipment, and usual house maintenance works group. ,” the DLD commented.
