Dubai Inflation Increases Slightly

UAE inflation is expected to run 2 percent for the year.

The annual inflation rate in Dubai increased to a three month high of  0.3 percent in October. Although food costs climbed, experts said that inflationary pressures remained modest. Consumer price growth in Dubai, which accounts for 28 percent of the UAE economy has been below 1 percent this year. By contrast, in Abu Dhabi consumer prices declined to a 22 month low of .9 percent. Analysts expect inflation in the UAE to increase to 3 percent from 2 percent in 2012. The rate in 2010 was .9 percent.