26-03-2014 Increasing of rent rate leads to boost of escalation of inflation.
Because of the increasing of rent rate, the inflation in Dubai is at the highest level since December 2009, being in February – 2.6%.
According to official figures of Dubai Statistics Centre, the increasing of prices in February 2014 is 2.6%. According to forecasts, in 2014 inflation rate will be 2.5%, in 2015 – 2.7%.
Statistically, housing rent and utility bills, which are 44% of consumer basket, increased for 4.5% for 12 months, for February it has increased for 0.6%. Expenses for meals (11% of consumer basket) have increased for 3.7% for 12 months, but have decreased in February comparing to January for 0.7%. Independent experts are not agreeing that official figures reflect reality, because for new tenants housing rent increased for 24% for a year. Even if majority of tenants renewed their contracts and the increasing of rent rate was much lower thanks to limits by law, the average of housing component of inflation should be higher.