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64217
Thu, 06/04/2009 - 14:10
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New unit to track inflation
The UAE said yesterday it had created a new unit to gather regular consumer price information and publish monthly data on inflation in line with recommendations by the International Monetary Fund (IMF).
The Ministry of Economy made the statement after releasing the country's first monthly inflation figures and updating the consumer price index to be based on 2007 instead of 2000 under a collective agreement within the GCC. It put the inflation rate at 4.94 per cent during the first four months of 2009 and 12.26 per cent in 2008, higher than the 11.1 per cent in 2007 and more than quadruple the rate of 2.9 per cent in 2002 according to a report in "Emirates Business."
The Ministry said a national team has been set up under a cabinet decision to unify consumer price indices in the seven emirates, adding that the team comprises representatives from the Ministry, the Central Bank, the statistics centres in Abu Dhabi and Dubai, and the Sharjah data base department.
It said the updated inflation data released this week was the team's first effort and that regular figures on inflation would be published monthly and would cover the UAE as a whole and each emirate individually.
"In line with recommendations by the IMF mission, which visited the UAE during 2007 and 2008, the Ministry has completed a project to develop the data and consumer price system in the UAE. This project includes the establishment of a consumer price unit within the central statistics department at the Ministry and the appointment of more experts to carry out this task," the Ministry said.
"The unit will work to unify all consumer price data issued by the Ministry and statistics centres in Abu Dhabi, Dubai and other emirates. It has also updated the price index basket of goods and services and approved 2007 to be the base year in the consumer price index instead of 2000 in line with a GCC agreement."
"This is a very positive development," an Abu Dhabi-based banker said. "Publishing monthly inflation data will serve consumers and help investors. It will also ensure better and sound planning by UAE policymakers."
Unlike other GCC countries, the UAE had only published delayed annual inflation data because of its political and economic federal system. Sources cited a delay in gathering price data from some emirates and the divergence in consumer price systems within the country.
Most Gulf nations began issuing monthly consumer price figures after inflation climbed to one of its highest levels in 2008 because of the oil boom, strong domestic demand, a surge in food prices and rents and the weakening in the US dollar, to which most of their currencies are pegged.
The UAE had the second highest inflation rate in the GCC after Qatar last year but economists expect the rate to sharply fall through 2009 as a result of lower rents and food prices, a sharp decline in the real estate sector in some emirates and strengthening of the US dollar. –
The Ministry of Economy made the statement after releasing the country's first monthly inflation figures and updating the consumer price index to be based on 2007 instead of 2000 under a collective agreement within the GCC. It put the inflation rate at 4.94 per cent during the first four months of 2009 and 12.26 per cent in 2008, higher than the 11.1 per cent in 2007 and more than quadruple the rate of 2.9 per cent in 2002 according to a report in "Emirates Business."
The Ministry said a national team has been set up under a cabinet decision to unify consumer price indices in the seven emirates, adding that the team comprises representatives from the Ministry, the Central Bank, the statistics centres in Abu Dhabi and Dubai, and the Sharjah data base department.
It said the updated inflation data released this week was the team's first effort and that regular figures on inflation would be published monthly and would cover the UAE as a whole and each emirate individually.
"In line with recommendations by the IMF mission, which visited the UAE during 2007 and 2008, the Ministry has completed a project to develop the data and consumer price system in the UAE. This project includes the establishment of a consumer price unit within the central statistics department at the Ministry and the appointment of more experts to carry out this task," the Ministry said.
"The unit will work to unify all consumer price data issued by the Ministry and statistics centres in Abu Dhabi, Dubai and other emirates. It has also updated the price index basket of goods and services and approved 2007 to be the base year in the consumer price index instead of 2000 in line with a GCC agreement."
"This is a very positive development," an Abu Dhabi-based banker said. "Publishing monthly inflation data will serve consumers and help investors. It will also ensure better and sound planning by UAE policymakers."
Unlike other GCC countries, the UAE had only published delayed annual inflation data because of its political and economic federal system. Sources cited a delay in gathering price data from some emirates and the divergence in consumer price systems within the country.
Most Gulf nations began issuing monthly consumer price figures after inflation climbed to one of its highest levels in 2008 because of the oil boom, strong domestic demand, a surge in food prices and rents and the weakening in the US dollar, to which most of their currencies are pegged.
The UAE had the second highest inflation rate in the GCC after Qatar last year but economists expect the rate to sharply fall through 2009 as a result of lower rents and food prices, a sharp decline in the real estate sector in some emirates and strengthening of the US dollar. –
