Abu Dhabi’s consumer price index (CPI) rose 3.1% in February 2011 compared to the same month in 2010 according to recently released figures by Statistics Centre Abu Dhabi. Consumer prices rose 3.3 per cent for the first two months of 2011 and the CPI edged up 0.1% to 121.2 points in February 2011, up from 121.0 points in January 2011.

The report by Abu Dhabi Statistics Centre (SCAD) claimed that food and drinks sector contributed significantly in the inflation numbers followed by housing, water, electricity, gas and other fuels. This rise is attributed to around 3.4 per cent increase in house rents.

SCAD's report shows that the "Food and non-alcoholic beverages group" was the highest contributor to the rise in inflation while housing, water, electricity, gas and other fuels group accounted for 35.9 per cent in the overall figures.

Prices of the clothing and footwear group retreated by 14 per cent according to the UAE's Minister of Economy- Sultan Bin Saeed Al Mansoori. He asked for the need of economic diversification for pushing the growth of UAE, the world’s third largest oil exporter.