Abu Dhabi: Inflation falls to two-year low

12/01/2012 - Northern Emirates Property & Investment News Posted by Neil King
Abu Dhabi: Inflation falls to two-year low

The amount of disposable income in Abu Dhabi is on the rise, property investors could be interested to learn.According to new figures, inflation in the oil-producing nation fell to a two-year low of 1.9 per cent last year.The figure is significantly lower than the 3.1 per cent recorded in 2010 and accounts for lower prices in the clothing sector.However, while the cost of clothing has declined, prices in the food, housing and utility sectors have increased.Overall, the data from the Statistics Centre Abu Dhabi showed that living costs edged down by 0.2 per cent last month.Giyas Gokkent, chief economist at National Bank of Abu Dhabi, said: "As the housing supply … increases, we continue to expect this downward pressure on rents and therefore a moderating influence on the overall consumer price index." "We are in a disinflationary period. Global food prices are off significantly from the peak that they saw in February of 2011 and at the same time the dollar continues to be strong against major currencies and that by itself is a disinflationary factor."