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FINANCIAL NEWS
UAE inflation set to rise 5 percent on subsidies removal
23 Jul 2015
(MENAFN) As a result of a total removal of energy subsidies, inflation in UAE is set to increase by 5 percent, chief economist at Abu Dhabi Commercial Bank (ADCB) said, Khaleej Times reported.
Any increase in oil prices will have a multiplier effect on the economy due to its wide usage, says Khan. Each sector, industry and service will have a different impact, she said in the statament.
“We don’t expect that to be the case. Any adjustment is likely to be a gradual one. We will only change our inflation forecast once we get a better understanding of pricing mechanism,” she added.
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