Consumer prices in the UAE fell 0.4 per cent year-on-year in October. This is the fourth month in a row that prices have decreased.

According to data from the Economy Ministry, prices fell 0.1 per cent from the previous month. The figures showed the fall in prices was due to the declining costs of housing and clothing.

The UAE Economy Minister Sultan bin Saeed al-Mansouri said on 20 November that he expected inflation in the UAE to be 3 per cent in 2010, from 12.3 per cent in 2008.

Inflation in the country has fallen as a result of a slowdown in the economy and in credit growth.

In the first half of 2009, inflation in the UAE was 3.4 per cent, according to the Economy Ministry. The UK’s Standard Chartered is predicting that inflation in the UAE will increase in 2010, and could rise to about 6 per cent.