Open

Coming up

Don't miss

Replay


LATEST SHOWS

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

#THE 51%

Sweden: A Feminist's Paradise?

Read more

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

WEB NEWS

NSA targets 'Tor' network users

Read more

WEB NEWS

Web users call for peace in Gaza

Read more

BUSINESS DAILY

French government hopes to collect €1.8bn from foreign accounts

Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • UN Security Council calls for immediate Gaza ceasefire

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

  • France calls on its nationals to leave Libya as violence escalates

    Read more

  • Boko Haram kidnap Cameroon minister's wife in deadly attack

    Read more

  • Muslims prepare for Eid al-Fitr festival

    Read more

  • ‘Irresponsible’ American dad tries to scale Mont Blanc with children

    Read more

  • Ukraine fighting prevents observers from accessing MH17 crash site

    Read more

  • In pictures: Crowds flock to enjoy the Tour de France show

    Read more

  • Netanyahu says Hamas 'violating its own ceasefire'

    Read more

  • Video: At the scene of the Air Algérie crash in Mali

    Read more

  • Costa Concordia arrives in port of Genoa to be scrapped

    Read more

  • In pictures: Youths clash with police at banned Gaza protest

    Read more

  • Russia lashes out at new EU sanctions over Ukraine

    Read more

  • Bodies of all Air Algérie crash victims to be brought to France

    Read more

  • Syrian army and ISIS both claim advances

    Read more

  • Briton kidnapped in Yemen freed after five months

    Read more

  • New round of Gaza ceasefire talks takes place in Paris

    Read more

UAE housing market feeds spiralling inflation

Latest update : 2008-06-14

Inflation in the oil-rich United Arab Emirates, where the consumer prices index has sharply increased over the past few years, hit 10.9 percent in 2007, an official study said, pointing to the surging cost of house rentals.

Consumer prices in Abu Dhabi, the wealthiest of seven emirates forming the UAE, increased by 11.5 percent in the first quarter of 2008 from 10.7 percent a year earlier, Abu Dhabi's Department of Planning and Economy said.

The study blamed the increase in UAE and Abu Dhabi inflation mainly on the surging cost of house rentals, the official news agency WAM said.

It slammed a UAE central bank policy of copying decisions taken by the US Federal Reserve reducing interest rates instead of tightening the monetary policy in the robust UAE economy. The dirham is pegged to the dollar.

"It is unreasonable that local interest rates would increase or decrease for external reasons, most importantly the policies of the US Federal Reserve, when the indices of the UAE economy imply that the opposite is needed," WAM quoted the study as saying.

The last official inflation figures provided by the ministry of economy pertain to 2006 putting it at 9.3 percent. Inflation figures for 2005 were not provided, but the International Monetary Fund put it at 7.8 percent.

The UAE sits on 97.8 billion barrels of oil reserves, which are ranked as the fifth largest in the world. Its economy is estimated to have grown by 7.4 percent in 2007, according to the IMF.

Date created : 2008-06-14

COMMENT(S)