Inflation in the UAE

in This entery i will discuss about the recent yeas inflation rates in the UAE, i can say the UAE is considered one of the most and unbeleivbly rowing economy in the world, even its considered an oil economy base however you can find the economy is fueled with other source of income such as FDI and services because we are a growing economy recent study shows that there will be an increse in wages in upcoming years which will help increase inflation, while recent wage increases are likely to support domestic demand further, putting rising pressure on prices. however economist say inflation is not a worry in the UAE since the sources of inflation are under control. After averaging 12. 3% in 2008, the UAE headline rate of consumer price inflation fell to 1. 6% in 2009 due to some central bank regulations, Having said that, it will be a sluggish process before housing costs start rising significantly, and it is anticipated that consumer price growth will remain at relatively low levels, reaching 2. 5% in 2011 and 2012, why I mentioned housing is because it is one of the most ifluential aspect in the UAE economy, the property sector played a huge role in terms the recent recession and inflation rates. in terms of UAE market the property market started to see some groth in it and new projects are established and thus injecting soe liquidity into the market which might increase the inflation rate in the near future