Macroeconomic Forecast UAE

Our core view sees consumer price inflation in the United Arab Emirates remaining benign in 2011 amidst a still weak outlook for the domestic property market. Despite the ongoing uptrend in prices across the global commodities complex, price controls and subsidies should help to limit the impact of rising oil and food prices on headline CPI prints. We forecast CPI coming in at 3.0% by end-year, compared to 1.7% at end-2010.

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