UAE inflation drops in August

Inflation in the UAE was 0.6 per cent year-on-year in August, data showed on Saturday.

In August, consumer prices fell 0.14 per cent month-on-month from July, data from the National Bureau of Statistics showed.

Housing costs fell 0.74 per cent in August from July and was down 3.16 per cent from August last year, mainly due to continued decline in rents in the Opec-member.

Food prices rose 0.49 per cent in August from July, which coincided with the one-month Islamic fasting month of Ramadan.

Transport costs, the third largest basket component with a 10 per cent weight, inched up 0.01 per cent from July but rose 1.5 per cent from August 2010.

Analysts polled by Reuters expected average inflation of 2.5 per cent in 2011.

Follow Emirates 24|7 on Google News.