Dubai inflation increased 0.9 percent in February


Dubai inflation rose 0.9 percent on an annual basis in February. Food and transportation costs increased from the previous month, according to data from the Dubai Statistics Centre.

Banking and the property sector remained weak, following debt problems experienced by some state-owned companies, although trade has picked up strongly.

On a monthly basis, consumer prices in Dubai increased by 0.2 percent in February, after a 0.1 percent fall in the previous month, data from the Dubai Statistics Centre showed.

Food costs, which account for 11 percent of the Dubai basket, rose by 2.7 percent in February after a 1.6 percent drop in January. UAE will start subsidising rice and bread from 1st of April to combat rising food prices until the end of the year.

Transport costs rose slightly by 0.2 percent month-on-month in February, down from 0.3 percent in the previous month.

Housing prices, the largest consumer expense at almost 44 percent, dropped 1.2 percent after a 0.1 percent increase in the previous month.

The IMF forecasts Dubai’s economy to grow by 2.8 percent this year, up from 0.5 percent in 2010.


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