#UAE Residents Cut Spending Despite Relatively Muted Inflation - Bloomberg

UAE Residents Cut Spending Despite Relatively Muted Inflation - Bloomberg

The United Arab Emirates may have one of the lowest levels of inflation globally, but residents have still cut back on spending over the past six months and many plan to continue trimming expenses this year, an online survey showed.

Inflation in the Gulf nation is expected at 3.7% this year before sliding to 2.8% in 2023, according to the International Monetary Fund. That’s lower than levels seen around the world -- including in the US, where inflation roared to a four-decade high last month.

Still, over half of the 1,006 UAE residents surveyed in the YouGov poll indicated their cost of living had increased substantially compared with a year ago. In response, 47% of those surveyed said they’ve cut spending on eating out and just over a third have pulled back on gadgets.

Two-fifths expect to reduce spending in those two areas going forward. The survey indicated that residents expect to cut back on takeaways and non-essential food items, grooming services, and leisure activities.