UAE: Inflation to fall next year, says economy minister – News

He added that the ministry had recently received the backing of the Cabinet to be more involved in the pricing of goods to ensure that prices are suitable for consumers.

Economy Minister Abdulla bin Touq Al Marri said the UAE’s inflation rate is one of the lowest in the world and is expected to fall further next year.

“We’ve been through global turmoil over the past six months. But it’s the UAE’s agility that has put it on the global map. Inflation in the first nine months was 5.5%, one of the lowest in the world. We expect inflation to decline further next year,” Al Marri told a news conference on Tuesday.

He noted that the country imports a lot of goods from non-dollar-based regions, which helps to fend off inflation due to the strengthening of the dollar-pegged dirham.

Inflationary pressures are expected to moderate gradually, the International Monetary Fund (IMF) said on its Article IV mission to the UAE in 2022.

“Inflation is rising in line with global trends and is expected to average just above 5% this year…We welcome temporary fiscal support targeting the most vulnerable to mitigate the impact of rising inflation, but also note the importance of maintaining a prudent overall fiscal stance, Support efforts to moderate inflation and strengthen buffers to ensure medium-term sustainability,” the IMF said.

The Minister was speaking at the launch of the “Future 100” initiative, which aims to support 100 start-ups in new sectors shaping the UAE’s future economy. Ohood bint Khalfan Al Roumi, Minister of State for Government Development and Future; CEOs representing local and international companies, start-ups as well as Emirati entrepreneurs attended Tuesday’s launch.

Abdulla bin Touq added that the Comprehensive Economic Partnership Agreement (CEPA) with other countries will help ensure adequate supply of basic commodities and reduce inflation in the country.

The UAE has already signed three Cepa agreements and plans to sign 26 more over the next seven to eight years.

“We monitor inflation and prices on retail store shelves on a daily basis. We monitor weekly price increases and decreases. We also talk to retailers and wholesalers. We have recently received support from Cabinet to be more involved in price setting to ensure that Prices are good for consumers,” the minister said.

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