Superheroes of Central Banking

Destroying money by printing it to excess is easy

“Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the US economy,” confessed US Fed chairman Ben Bernanke last October. “There’s a limit to what monetary policy can hope to achieve,” agreed the Bank of England’s Mervyn King the following month. “Monetary policy cannot do everything,” sighed the ECB’s Mario Draghi, speaking to the Financial Times in December. Read more

Inflation up 0.7 percent in the first two months of 2012

Abu Dhabi (SCAD) issued today its monthly report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the month of February 2012.

The report analyzes the CPI calculations for the month under review with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households. Read more

January inflation in Dubai down at 0.94%

The monthly consumer prices inflation rate in Emirate of Dubai dropped 0.94% in January 2012 compared to December 2011, due to the decrease in the inflation rate of Food and Non-Alcoholic Beverages group at 3.18%, Housing, Water, Electricity, Gas, and other Fuels 2.19%, Miscellaneous Goods and Services 0.72%, Recreations and Culture 0.52%, and Furnishings, Household Equipment and Routine Household Maintenance 0.46%,according to the monthly report issued by Dubai Statistics Centre. Read more

Bullish sentiment on gold as hedge against inflation

Last week, gold provided additional profit taking opportunities as it reached a seven week high.

A weakening US dollar encouraged investors to renew their safe haven interest in the yellow metal, but temporary lack of Chinese demand due to public holidays kept the gains moderate. The decision by the U.S. Federal Reserve to push back the date for any increases in its benchmark interest rate only fuelled investor appetite, pushing the gold prices above $1700 for the first time in more than five weeks. Read more

Consumer prices rose by 1.9% during the first 11 months of 2011

Statistics Centre – Abu Dhabi, issued today its periodic report on the Consumer Price Index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the first 11 months of 2011 and the month of October 2011.

The report analyses the CPI calculations for the periods under review, with the year 2007 fixed as the base year. It also details CPI results by welfare levels and types of households. Read more

Commodities growth to ease in 2012

Expectations of lower inflation is expected to reduce commodities’ appeal in 2012. Two of 2011’s strongest performing assets, gold and oil, are unlikely to replicate these returns in 2012. While supported by very low real interest rates, gold is likely to be held back by the U.S. dollar’s strength; however, an aggressive quantitative easing programme could provide a catalyst for a considerable move higher. Controlled supply should limit crude oil’s potential decline, according to Bill O’Neill, Chief Investment Officer for Europe, Middle East and Africa (EMEA) at Merrill Lynch Wealth Management. Read more

Dubai inflation rate increases to a three-month high

In October, annual inflation rate in Dubai increased to a three-month high of 0.3 percent. Food prices climbed, but analysts comment that inflationary pressure remains modest.

Abu Dhabi reported that annual inflation rate slowed to a 22-month low of 0.9 percent in October, after 1.0 percent in September. Read more

Precious metals lose ground

Commodities futures tumbled sharply on Thursday as the dollar rallied in the wake of the U.S. Federal Reserve’s bond-swap program and pessimistic economic data from China further damaged sentiment. Given their industrial nature, precious metals are getting caught up in the downward pull of cyclical commodities. As long as the environment does not brighten, the downtrend is expected to continue. Read more

UAE business activity hits 15-month low in August

Growth of the business activity in the private sector in UAE slowed to a 15-month low in August, according to the HSBC UAE Purchasing Managers’ Index (PMI).

The index, which measures the performance of the Opec member’s manufacturing and services sectors, dropped to 50.9 points in August, the survey of 400 private sector firms showed. Read more

UAE inflation at 2.5% over the first seven months of 2011

Statistics Center – Abu Dhabi issued its periodic report on the consumer price index (CPI) and the inflation rate in the Emirate of Abu Dhabi for the first seven months of 2011 and the month of July 2011. The report analyzes the CPI calculations for the periods under review, with the year 2007 fixed as the base year. Read more

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