The major reason for the decline in CPI is the reduction by 5.27 per cent in transportation and 6.54 per cent in housing costs. Both these components total just under half of the CPI basket of goods and services.
However, it's not only food and transportation that are impacting the cost of living. Quoting Dr Cedwyn Fernandes, economist, pro-vice chancellor and director, Middlesex University Dubai, Gulf News reports that worldwide, "food prices have been on downward trend and are not expected to rise worldwide.”
Food prices have shown a decrease of 0.74 percent in the UAE when compared to March 2018, a reflection of the weak demand conditions, according to Dr Fernandes.
Last year school fees were frozen in Dubai, and many schools added discounts, scholarships and bursaries to attract students.
"In effect, living costs in the UAE have fallen reducing the burden on the consumer.”
WhichSchoolAdvisor.com's Happiness Survey tracks sentiment year on year, and is currently live. It will be interesting to see whether the UAE's increasing statistical affordability is actually being felt, and whether it has any effect on sentiment which is driven by both a current sense of prosperity, but also confidence in the future.
If you have a view on how the emirates is faring, you can take the survey here.