UAE: High inflation due to mounting rents
Inflation in the UAE is running at over eight per cent due to increasing residential rents but will fall to four per cent by year-end, the Central Bank governor said Wednesday. According to Gulf News, Sultan Bin Nasser Al Suwaidi, Governor of the UAE Central Bank, told reporters at a bank meeting that mounting rents were the main source of inflation, but this would ease when new housing units hit the market this year.
"By the end of this year when new housing units come to the market, the situation will ease. It will ease further in 2007. We don't expect the inflation situation to last for more than nine months," he was quoted as saying.