Inflation in UAE down by 0.44% in February

Inflation in the UAE fell by 0.44 per cent in February, compared to January this year while it increased by 0.56 per cent on year-on-year basis, mainly because food inflation, according to National Bureau of Statistics data. Inflation in the country is expected to remain under 2 per cent in 2012, according to Minister of Economy Sultan bin Saeed Al Mansouri. On the other hand analysts predicted inflation rate at 2.4 per cent while it was 1.6 per cent last year. “I hope we will be able to control it. It was hovering around 1.5 per cent and it should not get past two per cent,” the minister said last week in Dubai. “The overall Consumer Price Index (CPI) for the UAE reached 116.39 in February 2012. …. It decreased by 0.44 per cent compared to its value at the end of January 2012, while it increased by 0.56 per cent compared to its value at the end of February 2011,” the bureau said in a statement. CPI jumped to a six-month high of 0.7 per cent on an annual basis in January, according to the government data. In February, the index heavyweight ‘housing, water, electricity, gas and other fuels’ declined, compared to same month last year. Last month food and non-alcoholic beverages witnessed a sharp jump followed by furniture and household goods, alcoholic beverages & tobacco, clothing & footwear and education. In other emirates, Abu Dhabi and Dubai witnessed declines in monthly inflation while rest of the emirates recorded rise in monthly inflation, according to the data.