UAE consumer price index rises 2.5% in 2021, government data shows

The UAE consumer price index rose 2.5% in 2021, reaching 108.62 points at the end of the year from 105.97 in December 2020, according to government data.

The inflation rate in December 2021, compared with November 2021, reached 0.02%, state news agency Wam reported on Tuesday, citing the Federal Center for Competitiveness and Statistics.

Abu Dhabi recorded an inflation rate of 0.08% in December 2021 compared to the previous month, according to the report.

Dubai‘s inflation rate reached 0.09%, Sharjah 0.11%, Ajman 0.11%, Umm Al Quwain 0.11%, Ras Al Khaimah 0.13% and Fujairah 0.10%, a- he specified.

The levels “reflect the economic stability and effectiveness of the government’s fiscal policy and its ability to contain any domestic or external inflationary pressures,” the report said.

The United Arab Emirates, the second-largest economy in the Arab world, launched a series of initiatives to support its economy last year and boost its competitiveness.

This includes a Dh388 billion ($105.65 billion) stimulus package to offset the effect of the coronavirus pandemic, as well as a new industrial strategy to increase the sector’s contribution from Dh133 billion to 300 billion Dh over the next 10 years.

The UAE Central Bank said it expects the economy to grow 4.2% in 2022, compared to 2.1% last year, according to its latest quarterly report.

The country has embarked on economic, legal and social structural reforms aimed at strengthening its business environment, attracting foreign investment, attracting highly skilled talent and encouraging companies to locate or expand their activities in the UAE .

Reforms include the extension of long-term residency visas to broader categories of residents, far-reaching changes to people and labor laws, allowing 100% foreign ownership of onshore businesses and, more recently, the decision to change the UAE’s working week to Monday to Friday to align with other major economies.

Update: February 1, 2022, 3:40 p.m.

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