Wednesday, May 16, 2012
DUBAI (Zawya Dow Jones)--Annual inflation in the United Arab Emirates rose slightly to 0.80% in April, compared with 0.64% in March, on the back of a small increase in food prices, according to the National Bureau of Statistics.
The food and beverages category prices within the country's Consumer Price Index, or CPI, were up 6.8% in April compared to the same month last year.
However, a significant drop in rents by 3.4% from April 2011 moderated the CPI index numbers, Giyas Gokkent, National Bank of Abu Dhabi's chief economist, told Zawya Dow Jones.
The Housing component constitutes nearly 36% of the U.A.E.'s CPI basket.
Gokkent said lower gold prices were expected to further relieve U.A.E.'s CPI index in May. "Gold prices have come down significantly from April to mid May and this will translate into a decline in the miscellaneous category which includes jewellery within U.A.E.'s CPI basket," he said.
-By Leila Hatoum, Dow Jones Newswires; +971-4-446-1686; leila.hatoum@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
16-05-12 1303GMT
