Housing cost drop maintains UAE inflation steady at 0.6%

The inflation in the UAE remained steady at 0.6 per cent in March compared to the previous month, but showed a drop from 1.2 per cent in the same month in 2011.

By Issac John

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Published: Mon 23 Apr 2012, 11:07 PM

Last updated: Tue 7 Apr 2015, 11:47 AM

The Overall Consumer Price Index, or CPI, reached 116.51 in the first quarter 2012, and compared with its 2007 base year, the average increase of prices amount to 0.64 per cent compared with first quarter 2011, figures released by National Bureau of Statistics show.

An IMF delegation to the UAE said the real gross domestic product, or GDP, of the Arab world’s second largest economy, would grow at 2.3 per cent this year, down from 4.9 per cent growth rate recorded last year, while inflation will remain at 1.5 per cent.

Sultan bin Saeed Al Mansouri, the UAE Minister of Economy, said inflation should not get past two percent in 2012. According to analysts, average inflation in the UAE is expected to rise to two per cent after 0.9 per cent in 2011.

Housing costs, which have the biggest weighting in the index, helped to keep the overall inflation rate in check in the first quarter by dropping by 3.86 per cent.

In the first quarter, food prices rose by 4.35 per cent, education cost rose 3.77 per cent, restaurant and hotel costs went up by 2.09 and medical care expense increased by 0.76 per cent.


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