Inflation hits nine-year-low

2010-03-07 | Published 03:20

Dubai: After 2008’s record breaking 10.8 percent inflation, the price rise slowed down to the more sober 4.1 percent last year.

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Inflation 2009 (2008)

  • Housing, water, electricity, gas and fuel: -2.4% (5.6%)
  • Telecommunications: 0.17% - lowest raise
  • Education: 18.6 % (18.6%) – highest raise
  • Food and non-alcoholic drinks: 2.2% (21.1%)

The real estate-fuelled boom made the inflation in Dubai reach record breaking heights 2008. After the industry stippled, the inflation decreased substantially. This year it is expected to drop even further, according to Dubai Statistics Centre.

The cutback is mainly to do with the pricing of housing and energy items, which has a big weight in the basket. Last year it rose only 2.4 percent.

Such a slow pace of increase in consumer prices is likely to have a positive impact on the emirate’s economy this year, Dubai Chamber of Commerce and Industry said on Monday:

“From a business perspective, a drop of inflation will increase the competitiveness of the UAE and attract more business.”

United Arab Emirates as a whole had a nine-year low inflation 2009, with 1.6 percent. The prices are not completely comparable as the measurement differs a bit.

Vendela Fredriksson

+46 (0) 8 587 066 00

vendela
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