The UAE’s inflation rate has eased to 2.8 percent year-on-year in November according to the data from the National Bureau of Statistics.
The inflation has come down from a five-and-a-half year high of 3.1 per cent in October.
The consumer price data shows that while the inflation eased, housing and utility costs, which account for over 39 per cent of consumer expenses, rose 4.4 per cent year-on-year, the fastest increase since February 2009, and 0.2 per cent month-on-month in November, reports Reuters.
According to the data released by the National Bureau of Statistics, food and soft drink prices, which account for nearly 14 percent of the basket, increased 2.1 percent on an annual basis but fell 1.4 percent from the previous month.
According to a Reuters forecast, average inflation in the UAE would accelerate to 2.5 percent in 2014 and 3.0 percent in 2015 from 1.1 percent in 2013, which was the highest level since 2009.
However, the IMF has forecast the UAE inflation rate at 2.2 per cent and 2.5 per cent for 2014 and 2015 respectively, saying the strengthening real estate cycle in Dubai residential market could attract increased speculative demand leading to higher inflationary pressure.