UAE inflation falls to 3.4 per cent

30 July 2009

Inflation in the UAE has fallen to 3.4 per cent in the first half of 2009 as the slowing economy and falling commodity prices take their toll on price rises, according to the latest figures from the Economy Ministry.

The figures also showed that in June moderate deflation occurred, with the consumer price index at the end of June 2009 at 113.05, compared with 113.08 at the end of June 2008. The June figures were down because of falling rental costs and clothing costs.

On average over the first half though, rents increased by 11.3 per cent compared with the first half of 2008, food and beverages rose by 2.7 per cent, and education costs rose by 9.7 per cent.

Annual inflation in 2008 was 12.3 per cent, according to the Economy Ministry.

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