UAE residents brace for higher cost of living and continue to make cutbacks to their household spending as global inflation is forecast to reach 7.9 percent globally.
The vast majority, 83 percent, of UAE residents said their cost of living has gone up compared to 12 months back in the latest YouGov Realtime study.
As inflation bites into household budgets across the world, the top areas where UAE residents intend to make cutbacks are on eating out at F&B outlets (47 percent), clothes/apparels (43 percent).
The rising costs have made residents cut back on their spending with 40 percent spending less on gadgets and electronics, while 32 percent spend less on F&B takeaways and 27 percent on non-essential food items. Grooming services (26 percent), overseas holidays (25 percent), and leisure activities (25 percent) are also likely to take a hit in the upcoming six months.
Inflation in the Arab countries is expected to rise to approximately 7.5 percent in 2022, compared to 5.7 percent in 2021.
Despite steep costs, 39 percent of residents hope their financial situation to be better in the future compared to 21 percent who anticipate their financial situation to worsen and 27 percent expect it to remain unchanged.
The inflation rate is expected to witness a relative decline in 2023 to reach 7 percent, the Arab Economic Outlook Report adds.
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