Abu Dhabi Dec inflation highest in 2.5 years
Abu Dhabi, January 12, 2014
Abu Dhabi’s inflation during December 2013 reached 2.2 per cent, the highest level since July 2011, according to figures released by Abu Dhabi Statistics Centre.
Housing and utility costs, which account for almost 38 percent of consumer expenses, gained 1.5 percent from a year earlier.
Last November, Abu Dhabi scrapped a 5 percent cap on annual rent increases, opening up a property sector where many tenants were paying below-market rents.
Prices of food and non-alcoholic beverages, which account for 16 percent of the basket, rose 4.6 percent in December. In November, they increased 3.8 percent on an annual basis.
Inflation for the whole of 2013 was 1.3 percent, the centre said.
Analysts polled by Reuters in September forecast average inflation in the entire United Arab Emirates federation would accelerate to 1.5 percent in 2013 and 2.3 percent in 2014 from 0.7 percent in 2012, which was the lowest level since 1990. – Reuters