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FINANCIAL NEWS
Dubai’s deflation slows to 1.2% in May
15 Jun 2012
(MENAFN) Dubai Statistics Center announced that last month, the emirate’s deflation fell to 1.2 percent, recording the lowest level in 4 months, reported Arabian Business.
The agency said that prices went up 0.3 percent on a monthly basis, adding that annual price declines slowed to 1.5 percent in April, copmpared with 1.9 percent a month earlier.
It attributed the deflation to weak housing market, which is oversupplied with new residential units.
Furthermore, costs of housing, including rents and utilities, slipped 0.1 percent from a month earlier, whereas food prices rose 3.1 percent from April, the highest rate in 11 months.
It is worth noting that Dubai’s economy grew 3.4 percent last year, driven by high trade flows and tourists numbers.
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