It has appeared that in the month of June, UAE consumer prices turned negative from a year ago; as housing costs, and prices of food and clothing decreased.

Data from the Ministry of Economy showed that, in June, the prices for essential consumer goods and services dropped by 0.03%, as compared to the prices during the same month last year.

The main contributors to the fall were the countrywide slump in housing rents and a decline in food prices.

The ministry said on its Web site that, in the month of June, housing costs dropped by 2%, and clothing prices decreased by 6.6%, whereas the prices of tobacco increased by 13.4%.

It should be noted that from January to June this year, because of the drop of 5.8% in housing costs and a 25 slippage in food prices, the consumer price index decreased by 2.7%. Housing rents and food prices account for over half of the consumer price index basket.

Inflation in the UAE slowed to 1.9% in April from 4.5% in March. The data of May inflation was not directly available. After reaching record highs in five of the six member states as commodity prices plummeted, the inflation rate across the Gulf Cooperation Council has slowed.

Simon Williams, an economist at HSBC Holdings told Bloomberg: "It looks like prices are stabilizing after sharp first quarter declines. Even with a weaker dollar, I don't expect to see pressure on prices any time soon."

On 26th July, the central bank said that price rises in the UAE climbed to 12.3% previous year from 11.1% the last year.