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FINANCIAL NEWS
UAE’s inflation at 0.9% in 2011
20 Jan 2012
(MENAFN) UAE inflation remained at 0.9 percent on average last year, marking the lowest rate since the first Gulf War in 1990, Reuters reported.
The National Bureau of Statistics said that prices edged down by 0.1 percent in December compared to the previous month, mainly due to lower housing costs.
Food prices, which account for 14 percent of consumer expenses, rose 0.6 percent month-on-month in December. They surged by 5.9 percent on average in 2011.
However, home prices fell by 0.3 percent after staying flat for two consecutive months, the data showed, bringing the average decrease to 2.4 percent last year.
Annual consumer price growth in the UAE slowed to levels close to zero in 2011, ending the year at 0.2 percent, thanks to its oversupplied housing market which offset food price advances, and a restricted credit policies following Dubai’s debt crisis.
The economy ministry expected inflation of between 1 percent and 1.5 percent in 2011.
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