Inflation United Arab Emirates 2023
Average inflation: 1.6%
Current Inflation
Inflation is low at 1.6%, below the ECB target of 2%.
Peak and Trough
The highest inflation was in January at 3.7%. The lowest inflation was in July at -1.3%.
- Highest month
- January: 3.7%
- Lowest month
- July: -1.3%
- Difference
- 5.0 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food with an average of 3.9%. The lowest price increase was in Energy with an average of 3.1%.
- Highest increase
- Food: 3.9%
- Lowest increase
- Energy: 3.1%
Historical Context
Current inflation is 1.0% higher than the 5-year average of 0.6%.
- 5-year average
- 0.6%
- 10-year average
- 1.6%
- All-time high (2022)
- 5.3%
- All-time low (2020)
- -2.1%
Trend
Inflation shows an upward trend. Compared to 2022, inflation has risen by -3.7 percentage point.
- Change vs. previous year
- -3.7 percentage points
- Largest monthly swing
- July: -9.7 percentage points
ECB Target
Inflation is 0.4% below the ECB target of 2.0%. Too low inflation may indicate economic weakness.
Purchasing Power
At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.
What you could buy for €100 this year will cost approximately €101.60 next year at this inflation rate.
Multi-year trend
Monthly figures 2023
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 2022 |
|---|---|---|
| January | 3.7% | +1.3 |
| February | 3.6% | 0.0 |
| March | 2.8% | -1.9 |
| April | 1.3% | -4.6 |
| May | 1.3% | -4.2 |
| June | -0.2% | -6.9 |
| July | -1.3% | -9.7 |
| August | 0.4% | -6.5 |
| September | 2.4% | -3.1 |
| October | 2.5% | -2.2 |
| November | 1.7% | -2.8 |
| December | 1.4% | -3.4 |
| Average | 1.6% |
Data source
Data from WorldBank. Last updated: 06/01/2026.