The consumer prices in Dubai fell 1.9 per cent year-on-year in December due to a 6.5 percent drop in housing and utilities costs, according to data from the emirate's statistics center.

On an average, the emirate's consumer prices fell 1.7 per cent in 2012, the first full-year deflation since at least 2007, after a rise of 0.5 per cent in 2011, the data stated.

Housing and utility costs, which account for almost 44 per cent of consumer expenses, fell 6.5 per cent year-on-year and  rose 0.1 per cent month-on-month in December.

Food prices, which make up 11 per cent of the basket, rose 1.0 per cent on an annual basis but dropped 1.3 per cent from the previous month, it added.-Reuters