UAE inflation hits 16-month high

01 November 2010

Price growth remains weak due to the impact of Dubai debt

According to data from the UAE’s National Bureau of Statistics, inflation rose to a 16-month high of 1.2 per cent on an annual basis in September, after staying at 0.9 per cent for four consecutive months, Reuters has reported. Consumer prices jumped 0.9 per cent on the month in September, the fastest growth rate since July 2008, mainly on swelling food and transport costs. The country’s inflation hit a nine-year low of 1.6 per cent last year, plunging from a record high of 12.3 per cent in 2008, and price growth remains weak due to the impact of Dubai debt woes that squeezed Gulf state’s banking sector.

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