Bloomberg News

Suwaidi Says U.A.E. Inflation Will Be About 2% This Year

January 23, 2012

(Adds 2011 rate and IMF in third paragraph.)

Jan. 23 (Bloomberg) -- United Arab Emirates central bank Governor Sultan bin Nasser al-Suwaidi expects an inflation rate of about 2 percent this year.

“The sources of inflation in the U.A.E. are under control,” he told reporters today in Muscat, Oman. “Real- estate prices and rents are stable, so there’s no domestic reason for it to rise.”

Annual consumer-price inflation was 0.2 percent in 2011 after hitting a high last year of 1.7 percent in June, according to the National Bureau of Statistics. Inflation in the U.A.E. will probably remain moderate because rents, which account for 40 percent of the inflation basket, are declining, the International Monetary Fund said last May.

The IMF forecasts an annual average inflation rate of 2.5 percent in the Persian Gulf country this year, according to the World Economic Outlook published in September.

Housing prices fell 4.7 percent from a year earlier in November, according to the statistics bureau.

--With assistance from Steve Bryant in Ankara. Editors: Jennifer M. Freedman, Ben Holland

To contact the reporter on this story: Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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