The annual inflation in Abu Dhabi for the 12 months in 2012 eased to 1.1 per cent due to a drop in the housing and utilities prices, according to data from the Abu Dhabi Statistics Centre.

The largest increase in prices was in restaurants and hotels, which jumped 14.5 per cent in December over the last month of 2011, while clothing and footwear prices rose 4 per cent, said the SCAD data.

Housing and utility costs, which account for almost 38 per cent of consumer expenses, fell 1.1 per cent year-on-year in December, it added.

Analysts polled by Reuters in September expected average inflation in the UAE at 1.3 per cent in 2012 after 0.9 per cent in 2011. -Reuters