UAE deflation at 0.16pc yoy in Feb
Dubai, March 23, 2010
Consumer prices in the UAE declined 0.16 per cent on annual basis in February, slightly less than a decrease of 0.32 per cent in January, data from the National Bureau of Statistics showed on Tuesday.
The consumer price index slipped to 114.15 compared to 114.33 in February 2009, which was revised from a previously reported 111.34.
The financial crisis ended an oil and real estate-fuelled boom in the Gulf region, depressing consumer prices from 2008 record peaks, with some countries such as the UAE especially hard hit due to Dubai's debt problems.
On the month, prices decreased 0.17 per cent in February, after falling 0.06 per cent in January, the data showed.
The bureau said prices in the main household category, which accounts for 39 per cent of the consumer inflation basket and includes rents and energy costs were down 0.32 per cent compared to the previous month. Food prices also fell by 0.72 per cent compared to January 2010.
Analysts polled by Reuters in January expected average inflation of 2.5 per cent this year as the economy recovers from the last year's downturn.
The ministry of economy said in February inflation is not likely to exceed 2 per cent in 2010.
UAE growth is seen to be the slowest in the region due to impacts of Dubai debt restructuring.-Reuters