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UAE inflation remains at 0.9 percent in 2011

UAE inflation remains at 0.9 percent in 2011

Inflation in the United Arab Emirates remained at 0.9 percent on average in 2011, unchanged from the previous year and well below analysts' forecasts, data showed on Wednesday. The rate was the lowest since the Gulf War started in 1990.


January 18, 2012 1:56 by

Consumer price growth in the Gulf OPEC member was 0.2 percent on an annual basis in December after a 0.1 percent fall of prices in the previous month, the data from the National Bureau of Statistics showed.

Compared to the previous month, prices edged down by 0.1 percent in December, after staying flat in November, mainly due to lower housing costs.

Analysts had previously expected inflation in the world’s No. 4 oil exporter to pick up gradually in 2011, partly because of increased public spending and credit growth recovery following the 2009-2010 Dubai debt crisis.

- UAE Economy Minister Saeed al-Mansouri reiterated in September that he expected gross domestic product to grow by between 3 and 3.5 percent in 2011.

- He said in May that inflation should stand between 1 and 1.5 percent in 2011.

- UAE central bank governor Sultan Nasser al-Suweidi said in June that inflation was likely to be lower than 3 percent as the real estate sector remained under pressure.
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