Inflation in the UAE will not exceed 2 percent in 2010, the economy minister was quoted as saying by state news agency WAM on Sunday.
Sultan bin Saeed al Mansouri did not elaborate on his prediction, only saying it reflected "positive results".
The global financial crisis ended an oil and real estate fuelled boom in the Gulf Arab region, pushing consumer price growth down from 2008 record peaks, with some countries such as the UAE experiencing temporary deflation in 2009.
The UAE, the world's third largest oil exporter, registered annual inflation of 1.56 percent last year, final data showed earlier on Sunday, down from a record high of 12.3 percent in 2008.
Consumer prices fell 0.42 percent on an annual basis in December, after 0.17 percent growth in the previous month, final data from the National Bureau of Statistics showed, confirming preliminary estimates.
On the month, prices decreased 0.71 percent in the last month of 2009, after rising 0.41 percent in November, due to a decline in the household category, the data showed.
Analysts polled by Reuters expected inflation to accelerate to 2.5 percent this year as the economy recovers from the last year's downturn.
The UAE central bank governor said in January the country would see a very low inflation rate for more than one year. (Reuters)For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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