Inflation in the UAE
Inflation in UAE stands at 12% - Gulf News
There was good reason to believe inflation was 15 to 20% two years ago. I have my doubts that inflation is as low as 12% today.
Readers, what do you think?
DPE [Abu Dhabi's Department of Planning and Economy] estimates that during the first three months of this year, inflation surged past 11.5 per cent while the index for rents, electricity and water was up 18.21 per cent from a year earlier.It would be of interest to know the weights used. Food and rent are major portions of the budgets many families. Then there is the cost of private tuition at all levels of education. According to reports those have increased - certainly more than 12% per annum.
The index for food, beverages and tobacco gained 19.78 per cent.
While DPE identifies rent as the single most important component, it acknowledges other factors such as the declining value of the dollar and the surging liquidity from oil surpluses as major contributors to rising prices.
There was good reason to believe inflation was 15 to 20% two years ago. I have my doubts that inflation is as low as 12% today.
Readers, what do you think?
Labels: inflation
posted by John B. Chilton at 6/16/2008 12:13:00 AM
3 Comments:
Since when does inflation number given by any government actually means squat for "the people out there in the real life"?
Without knowing how they calculate the inflation there is no way to know how close those numbers are from the truth.
For myself, my rent raised 65% (rent cap my ass), bringing my yearly expense for housing from 25% of my income to a whooping 41%.
So I guess 12% inflation does not apply to me, but I guess for my landlord it should be ok if you factor in the extra income he is making this year...
Agree entirely with bb. Also, AD govt just decided on more accurate inflation data: They KNOW they arent accurate enough. :-)
It won't succeed as a matter of fact, that's what I believe.
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