The UAE government is looking towards a reduced rate of inflation in the UAE next year, says Minister of Economy Abdulla bin Touq Al Marri.
Earlier this year the Central Bank of the UAE projected inflation at around 5.6% this year, which is lower than other parts of the world but would be the country’s highest rate since 2016.
However, in an address to media in Dubai the Minister of Economy said he expects that to fall next year.
UAE inflation forecast
“We have seen the last six months of global turbulence. But it’s the UAE’s agility that puts it on the global map,” Al Marri said.
“Inflation in the first nine months was 5.5 per cent, one of the lowest in the world. We are looking at inflation going down further next year”.
In a report last month the IMF said of the UAE: “Inflation has risen with global trends and is expected to average just over 5 percent this year.
“Inflationary pressures are projected to moderate gradually, including from the impact of tightening financial conditions. Further development of domestic capital markets, including through the issuance of local currency debt by the federal government will also support growth.”
Careful fiscal control from the United Arab Emirates government has, in part, helped the country from facing the surging inflation rates seen in other regions.
“We monitor inflation on a day-to-day basis and prices on shelves in retail outlets. We monitor prices that go up and down every week,” said Al Marri.
“We speak to retailers and wholesalers, too. We recently got the support from the Cabinet to involve more in price-setting to ensure prices are good for consumers,” he added.
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