DUBAI: The UAE’s inflation rate fell sharply on an annual basis to 1.20 percent in December compared to 2.6 percent in November, according to the UAE National Bureau of Statistics. The figures, cited by Reuters, showed that housing and utility costs, which account for over 34.1 percent of consumer expenses, rose 1.6 percent from a year earlier.
Food and soft drink prices, which account for nearly 14.3 percent, climbed 0.5 percent while transport costs rose 0.4 percent after the UAE increased domestic fuel prices for December. London-based consultancy BMI Research said inflation in the UAE will stay low throughout 2017 as the impact of subsidy cuts wears off. The headline consumer price index will average 1.8 percent, the joint-lowest annual average for six years, with housing and food to be the main drivers of inflation, the consultancy said.
