Housing costs offsetting inflation, experts say

07/07/2011 - Dubai Property News Posted by Neil King
Housing costs offsetting inflation, experts say

The low costs associated with housing in Dubai are offsetting inflation in other areas, it has been suggested.Recent figures from Dubai Statistics Centre have shown that overall consumer prices in the emirate increased by 0.5 per cent on a monthly basis in June.According to the report, this is the fastest pace at which prices have grown in the last ten months.Data from the study also showed that inflation in Dubai reached a record high of 10.8 per cent in 2008.However, Khatija Haque, senior economist at Emirates NBD in Dubai, said there is little cause for concerns as any rises are being offset by housing costs. "Overall, I am not concerned about inflation in the UAE because we see from the other components in the index that there is very little inflation elsewhere."We have rental prices and housing costs still coming down, and this is going to offset increases in food to some extent," she said.