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Sun 28 Dec 2014 02:48 PM

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Housing costs rocket but UAE inflation eases in November

New official figures reveal that housing, utility costs rise 4.4% year-on-year, fastest increase since Feb 2009

Housing costs rocket but UAE inflation eases in November

The UAE's inflation rate eased to 2.8 percent year-on-year in November from a five-and-a-half year high of 3.1 percent the previous month, it was announced on Sunday.

The UAE's National Bureau of Statistics released the November consumer price data which showed that housing and utility costs, which account for over 39 percent of consumer expenses, rose 4.4 percent year-on-year, the fastest increase since February 2009, and 0.2 percent month-on-month in November.

The data also revealed that food and soft drink prices, which account for nearly 14 percent of the basket, increased 2.1 percent on an annual basis but fell 1.4 percent from the previous month. 

Analysts polled by Reuters in September forecast average inflation in the UAE would accelerate to 2.5 percent in 2014 and three percent in 2015 from 1.1 percent in 2013, which was the highest level since 2009.