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Latest News

UAE inflation hits 18-mth high in Oct

Consumer prices in the United Arab Emirates climbed to an 18-month high of 1.9 percent on an annual basis in October, mainly on rising housing and food costs.

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November 21, 2010 4:07 by



Consumer prices in the United Arab Emirates climbed to an 18-month high of 1.9 percent on an annual basis in October, mainly on rising housing and food costs, data from the National Bureau of Statistics showed on Sunday.

Analysts expected prices in the world’s third largest oil exporter to pick up gradually this year as the Gulf country recovers from last year’s downturn. The second largest Arab economy is seen expanding by 2.4 percent this year following an IMF estimated contraction of 2.5 percent in 2009, lagging behind its regional peers due to impacts of Dubai debt restructuring.

UAE inflation hit a nine-year low of 1.6 percent last year, after a record high of 12.3 percent in 2008.

“It could go slightly higher but I still expect inflation to remain contained in the GCC (Gulf Cooperation Council) and in the UAE in particular,” said Giyas Gokkent, Head of Research at the National Bank of Abu Dhabi.

(Reporting by Martin Dokoupil, editing by Reed Stevenson)



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