‎UAE inflation seen rising to 2.3% in 2026

‎<p class="ckeCaption"><span ><span class="ckeCaption" ><img src="https://argaamplus.s3.amazonaws.com/f297da55-4885-49a7-b036-c27060061690.png" ></span></span>UAE inflation averaged 1.3% in 2025, with Abu Dhabi at 0.3% and Dubai at 2.8%.</p> <hr> <p dir="RTL" >The Central Bank of the UAE expects the supply disrubtions caused by the closure of the Strait of Hormuz following the recent regional conflict to push inflation to 2.3% in 2026, driven by higher food and transportation costs, although it will remain well below the global average.</p> <p dir="RTL" ><br> According to its Financial Stability Report 2025, the central bank also expects inflation to remain moderate over the medium term, as housing rents stabilize and demand-driven inflationary pressures ease.</p> <p dir="RTL" ><br> The UAE’s average inflation rate stood at 1.3% in 2025, mainly driven by lower transportation costs and declining food prices. Abu Dhabi recorded an average inflation rate of 0.3%, while Dubai’s average inflation rate reached 2.8% during the same year.</p> <p dir="RTL" ><br> According to Argaam data, the Central Bank of the UAE forecast in its Q2 2026 Economic Review that the country’s real GDP would grow by 1.7% in 2026, while GDP growth is expected to accelerate to 9.8% in 2027, supported by oil sector growth rising to 25.7%, while the non-oil sector is expected to maintain robust growth of 4.5%.</p> <p dir="RTL" ></p>

Publication

Argaam - UAE News · Trade Publication

Published

17th August 2026

Original report

argaam.com

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