Dubai will launch, by the second quarter of 2006, an internationally comparable consumer price index (CPI) that would serve as a basis for determining the purchasing power of dirham and the inflation rate.
Announcing this, Abdul Rahman G. Al Mutaiwee, Director-General, Dubai Chamber of Commerce & Industry (DCCI), said the index - to be dubbed as DCCI-CPI - would be released regularly on a quarterly basis to allow for international benchmarking, according to reports in the UAE's daily newspapers.
According to him, the DCCI, which has undertaken the task of producing a globally comparable consumer price index for the emirate, is also willing to contribute to the establishment of such CPIs in other emirates.
The move is considered a milestone in Dubai's rapid growth as a developed economy, Mutaiwee said. "The index also will be a key indicator of the economic well-being of Dubai, its businesses and industry. It will help forecast the business and economic conditions and will act as a basis for redirecting fiscal and monetary policies as well as trade and exchange rate policies," he was quoted as saying by WAM.
