Vigilant policy criteria to control inflation in UAE

Key takeaways: 

• Global inflation is predicted to have topped in the third quarter of 2022 at 9.2 per cent and should fall throughout this year.
• The UAE government has taken various practical steps to control inflation despite a complex global environment.

As inflation has become a significant problem for major economic powers, experts say that the UAE and Gulf Cooperation Council (GCC) nations will show strength and continue containing the costs of essential goods through harsh policy measures.

In its latest international economic outlook report, FocusEconomics said inflation is predicted to be bombed this year in eastern Europe, the Middle East, Sub-Sahara Africa and Latin America.

The economic consultancy said global inflation is anticipated to have topped in the third quarter of 2022 to 9.2 per cent and should fall throughout this year.

“Inflation in the Group of Seven (G7) nations will be lower than in most areas in 2023 — albeit still promoted by historical standards,” according to the statement citing the war in Ukraine, western boycotts on Russia, Opec’s oil production decisions and the Black Sea grain contract some of the critical threats for global inflation.

Higher rents weigh

Monica Malik, the chief economist at Abu Dhabi Commercial Bank, said inflation should stay in the medium range this year, mainly in the UAE, where there was a marked strengthening in the costs this year.