UAE: High rents push inflation up
Inflation in the UAE started to go up in 2004 and a further significant rise is expected in 2005 according to a recent report by National Bank of Dubai's Investment Research. The report noted that significantly higher rent prices as well as growing fuel prices have led to strong inflation levels.
According to the report, the current sharp increase in rentals which form the single largest constituent of the CPI at 36.1 per cent "raises considerable fears over the exact market rate of inflation." During 1H2005, annual rents in Dubai have risen by approximately 40per cent, it added.