The Department of Planning and Economy (DPE) will begin releasing monthly inflation figures for Abu Dhabi starting in November, according to its chairman, Nasser Ahmed Alsowaidi. Currently the DPE announces inflation figures only every three months. The new information will be measured using an updated basket of consumer goods, representing the spending habits of Emirati citizens. The new basket has been developed in consultation with the Government in order to ensure consistency of measurement methodologies throughout the country.
Last week, the DPE released an overall inflation figure of 12.88 per cent for the second quarter of this year, only to call the number incorrect and "inaccurate" the following day. Mr Alsowaidi called the misunderstanding "genuinely unintentional". The DPE undersecretary, Mohammed Omar Abdullah, has not given a date for the release of what it calculates the actual figure to be. Rent was the largest contributor to the rising levels of inflation and would continue to be for the next three years, or until real estate companies completed several large developments, Mr Alsowaidi said. Food and oil prices may fall during the same period though, which could dampen inflation rates.
"Rent prices over the last six months have become ridiculous, unreasonable, and not sustainable," Mr Alsowaidi said. "Inflation always comes with fast growth, and we have really fast growth. It's just part of the price you have to pay." tpantin@thenational.ae
