UAE inflation at its lowest since 1990

Inflation in the UAE remained at 0.9 per cent on average in 2011, unchanged from the previous year and well below analysts' forecasts, data showed yesterday. The rate was the lowest since the Gulf War started in 1990. Consumer price growth in the country was 0.2 per cent on an annual basis in December after a 0.1 per cent fall of prices in the previous month, the data from the National Bureau of Statistics showed. Compared to the previous month, prices edged down by 0.1 per cent in December, after staying flat in November, mainly due to lower housing costs. Analysts had previously expected inflation in the world's No. 4 oil exporter to pick up gradually in 2011, partly because of increased public spending and credit growth recovery following the 2009-2010 Dubai debt crisis. Article continues below UAE Economy Minister Sultan Bin Saeed Al Mansouri reiterated in September that he expected gross domestic product to grow by 3 to 3.5 per cent in 2011. He said in May that inflation should stand between 1 and 1.5 per cent in 2011.