The United Arab Emirates’ annual inflation rate continued to rise at the start of 2026, with the Consumer Price Index (CPI) reaching 2.49% year-over-year in January 2026. This marks an acceleration from December 2025, when the CPI stood at 2.04% year-over-year.
Both readings are based on year-over-year comparisons, meaning the January 2026 figure reflects price changes relative to January 2025, while the December 2025 reading compares prices to December 2024. The pickup from 2.04% to 2.49% suggests mounting price pressures in the UAE economy heading into 2026, although inflation remains at a moderate level overall.
The latest CPI data, updated on 16 September 2026, will be closely watched by markets and policymakers for indications of how persistent this upward trend in inflation may become and what it could imply for future economic and policy decisions in the Emirates.
