The war in Ukraine has led to a surge in commodity prices. Energy and food prices have skyrocketed after the Russian invasion of Ukraine. The acceleration in worldwide fuel prices delivered positive fiscal balances to major oil-rich countries, particularly the Gulf states. Nevertheless, the positive current account balances did not leave these countries immune to inflation. This study uses up-to-date inflation numbers to determine the drivers of inflation in the Gulf region by examining the case of Dubai, as one of the most popular cities in the region. The study uses monthly inflation numbers that cover the year 2022 and applies an element-by-element analysis to identify the drivers of the accelerated inflation. Our findings suggest that Dubai’s inflation is mainly driven by the transport component in the consumer basket, while food items had a modest impact on Dubai’s inflation.

Author Biography

Dr. Ahmed Rashad is an Assistant Professor of Economics at Anwar Gargash Diplomatic Academy’s (AGDA) Academic Department, in UAE. Prior to joining AGDA, Dr. Rashad was a Senior Economist at the Dubai Department of Economy and Tourism-Government of Dubai; He served as an Economic Consultant – Rethinking Inequality in Arab Countries Report at the United Nations Economic and Social Commission for Western Asia (ESCWA), as well as an Economic Expert for the Arab Development Portal Project at the United National Development Programme (UNDP).

Dr. Mona Mostafa El-Sholkamy is an Associate Professor at the Mohammed Bin Rashid School of Government (Dubai, UAE) and a graduate of the Economics (Bachelors) and Global Affairs & Public Policy graduate Program, American University in Cairo, Egypt. She is also an affiliate of the Harvard Business School’s Microeconomics of Competitiveness group. Her research work revolves around sustainable development, trade policies, food security, health policies and sovereign wealth fund investments. She has published research in top ranking journals such as the International Journal of Management and Applied Sciences, Journal of Business and Economics, and Cambridge University Press.

Dr. Muhamad Olimat is a Professor of International Relations and Middle East politics at the Anwar Gargash Diplomatic Academy in Abu Dhabi, the United Arab Emirates. His areas of expertise are Middle East Studies, US foreign policy toward the Middle East and North Africa (MENA), and Sino-Greater Middle East relations. He is the author of five books, several book chapters, and articles on contemporary Middle East politics, the political economy of the Middle East, political development of the Middle East, and Sino-Middle Eastern and Sino-Central Asian relations.