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UAE plans to publish more accurate inflation data
The UAE plans to update its consumer price index to reflect price trends more accurately and release data more regularly, possibly every month, a person with direct knowledge of the matter said.
- Reuters
- Published: 00:39 February 28, 2008
Abu Dhabi: The UAE plans to update its consumer price index to reflect price trends more accurately and release data more regularly, possibly every month, a person with direct knowledge of the matter said.
The UAE Ministry of Economy will conclude a year-long consumer-spending survey next month after collecting weekly data on the expenses of 6,000 to 7,000 families in the country, said the person. "The survey will be used to modify the index and calculate inflation going forward," the person said. "This will enable the government to release data more regularly rather than just once a year."
Rents, the biggest driver of inflation across the Gulf, has a 36 per cent weighting in the UAE consumer price index.
The government is also setting up a statistics centre based in Abu Dhabi that will liaise with the emirates to provide regular economic indicators, including gross domestic product statistics, which are also released only annually. "This is part of the federal government's strategy to release data and information in a way that is more up to date and accurate," the person said.
Inflation in the UAE hit a 19-year high of 9.3 per cent in 2006, and probably accelerated to 10.9 per cent last year on surging rents, National Bank of Abu Dhabi (NBAD) said this week.
Saudi Arabia, Kuwait and Oman publish monthly inflation data, while Qatar releases price statistics quarterly. Bahrain has begun calculating inflation data monthly.
"If you don't have data, policymakers are shooting in the dark," said Giyas Gokkent, head of research at (NBAD). "Data are also necessary to guide expectations ... the government needs to use these tools to signal the market."
More regular UAE inflation data would be an "important step" towards helping the Gulf economies converge towards a single currency, Gokkent said.
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