Fuel and housing costs drop as UAE inflation falls

15/08/2011 - Dubai Property News Posted by Neil King
Fuel and housing costs drop as UAE inflation falls

Property investors keen on purchasing buy-to-let properties in Dubai and other northern emirates could be among those interested in the latest inflation statistics.Figures recently published by the National Bureau of Statistic in the UAE have shown that consumer prices retreated to a three-month low in July.This resulted in a drop in housing costs and fuel prices, which could make Dubai and other destinations in the Middle East more attractive to ex-pat home buyers and renters.Liz Martins, the Middle East and North Africa economist at HSBC, commented: "Consumer price inflation numbers continue to back up our view that the excess capacity in the economy is outweighing the impact of dollar weakness."Although the Ramadan effect could take prices higher, the impact is likely to be short term."The figures showed that inflation was running at an annualised rate of 1.3 per cent last month, slowing from 1.7 per cent in June.