Dubai's inflation edged up to a five-year high of 3.5 per cent year-on-year in August from 3.4 per cent in the previous month, data from the emirate's statistics center showed.

The housing and utility costs, which account for almost 44 per cent of consumer expenses, jumped 6.2 per cent year-on-year and 0.4 per cent month-on-month in August.

Food and beverage prices, which account for 11 per cent of the basket, increased 1.8 per cent on an annual basis and 2.5 per cent from the previous month.

Analysts polled by Reuters in April forecast average inflation in the UAE would accelerate to 1.9 per cent in 2014 and 2.5 per cent in 2015 from 1.1 per cent in 2013, which was the highest level since 2009.-Reuters