Dubai inflation rate rose by 0.5 per cent, and while the housing sector may drag it down. (photo: Reuters)
Dubai’s rate of inflation for November rose to 0.5 per cent from a level of 0.28 per cent the previous month, according to new data released by the Dubai Statistics Center.
This increase was underscored by an increase in food prices by 4.2 per cent in November, from 2.1 per cent in October.
Meanwhile, housing costs fell for the eighth consecutive month, contracting -1.9 per cent, annually, in November from -2.0 per cent in October.
Despite the hike in food costs, Beltone Financials pointed out that the emirate’s inflation rate will be kept in check as 40 per cent of the Consumer Price Index is determined by housing costs.
The firm added that it forecasts "inflation in Dubai will average 0.5% in 2010, and will remain tame throughout 2011, rising to 2.7%."