Minister says inflation may stay around 2 percent for the year.
Recent data states that Abu Dhabi experienced a slight rise in consumer prices throughout January, up 0.11 percent from December’s levels, according to Statistics Centre Abu Dhabi (or SCAD).
The statistics organization stated that month over month data indicated an 0.11 percent rise in the CPI in January, when it climbed from December’s 120.91 points to 121.04 points last month.
The pressures of inflation found in Abu Dhabi remain low in comparison to the balance of the region.
Economist Dr Mohammad Amerah spoke to Gulf News about the SCAD data and stated that prices are currently under the control of market forces and being influenced by the efforts of the government.
SCAD noted that the biggest increase was seen in food and beverages (non-alcoholic), which climbed 0.4 percent. That figure was a result of increases seen in many different subgroups of that larger category, namely cocoa, tea and coffee, which rose by 13.9 percent.
Also, the price of soft drinks, juices made from fruits and vegetables and mineral water jumped by 8.4 percent. Meat prices climbed by 3.6 percent and oils and fats were 1.6 percent more expensive from one month to the next.
On a yearly basis that CPI (consumer price index) in Abu Dhabi jumped 3.46 percent in January, hitting 121.04 points in 2011 up from the 2010 level of 116.99 points.
The cost of housing and energy make up 38 percent of the weighted basket in Abu Dhabi and remained at a steady level from December to January.
Food makes up over 16 percent of the Abu Dhabi basket and increased by 0.4 percent in January after falling 1.9 percent the month before.
The UAE should see inflation levels of about 2 percent for 2011, according to the Minister of Economy Sultan bin Saeed Al Mansouri.Paul Holdsworth, Staff Writer, Gulf Jobs Market News