IMF: UAE's consumer price index does not give the appropriate weight for housing
Despite a slower increase in Dubai's residential rents from 30.1 per cent in the first quarter of 2005 to 17.1 per cent in the first quarter this year, a tweaking of the relative weights of the CPI may better reveal the reality of price hikes in the country.A reform of competition laws is needed, but let's be clear: weak competition is a cause of high prices, not a cause of inflation, i.e. rising prices.
Shaikha Lubna Al Qasimi, UAE Minister of Economy, earlier this year announced that the government intends to tackle inflation by further boosting competition. A shake-up in the competition laws is expected to materialise before the end of the year.