The CPI index was 116.18 in January and has fallen each month since then, reaching 113.07 in April. In total, this marks a 2.7 per cent drop in prices in the first four months of 2009.

The index fell for all categories of goods, except alcohol and beverages, and hotels and restaurants, where it increased slightly, and education where there was no change. The index is based on 2007 prices being 100.

Although prices fell in first few months of 2009, they are still higher than they were a year ago.

The overall inflation rate for first four months of the year is 4.9 per cent, compared to the same period in 2008. However, this is still a large deceleration in the pace of inflation, which was 12.3 per cent in 2008.

Abu Dhabi recorded the lowest inflation rate in the UAE, according to the figures, which showed inflation in the emirate was just 1.76 per cent.

Inflation in Ras al-Khaimah was 2.27 per cent, followed by 5.45 per cent in Dubai, 5.78 per cent in Fujairah, 5.95 per cent in Ajman and 6.02 per cent in Sharjah. Inflation was highest in Um al-Quwain, at 7.66 per cent.