Inflation in Abu Dhabi jumped to 10.7% last year, driven by higher rent, transport and food costs, Al-Ittihad newspaper reported on Monday, citing the emirate's Department for Planning and Economy.
Rents accounted for 58% of inflation for the year, transport and shipping 15%, and food, beverage and tobacco 11%, the newspaper said, quoting a report released by the department. Inflation in 2006 was 8.3%, it said.
Inflation across the Gulf is surging to a record or near-record as economies grow on a five-fold increase in oil prices during the last six years, and governments invest windfall oil revenue in infrastructure and real estate.
"Rising rents, fuel costs and liquidity in the local markets are the main reasons for the increase in inflation," Al-Ittihad said, citing the report.
Gulf oil producers, except Kuwait, peg their currencies to the US dollar, which has tumbled to record lows against the euro and a basket of major currencies this month, driving up import costs.
The dollar's decline and higher oil prices were contributing to inflation in Abu Dhabi by making imports more expensive, the department said, according to Al-Ittihad.
The UAE government, which has kept its dirham pegged to the dollar at the same rate for the last 11 years, aims to reduce inflation to 5% this year, its economy minister said earlier this month.
For the UAE as a whole, inflation probably accelerated to 20-year peak of 10.9% last year, from 9.3% a year earlier, National Bank of Abu Dhabi (NBAD) said last month.
Rents accounted for 58% of inflation for the year, transport and shipping 15%, and food, beverage and tobacco 11%, the newspaper said, quoting a report released by the department. Inflation in 2006 was 8.3%, it said.
Inflation across the Gulf is surging to a record or near-record as economies grow on a five-fold increase in oil prices during the last six years, and governments invest windfall oil revenue in infrastructure and real estate.
"Rising rents, fuel costs and liquidity in the local markets are the main reasons for the increase in inflation," Al-Ittihad said, citing the report.
Gulf oil producers, except Kuwait, peg their currencies to the US dollar, which has tumbled to record lows against the euro and a basket of major currencies this month, driving up import costs.
The dollar's decline and higher oil prices were contributing to inflation in Abu Dhabi by making imports more expensive, the department said, according to Al-Ittihad.
The UAE government, which has kept its dirham pegged to the dollar at the same rate for the last 11 years, aims to reduce inflation to 5% this year, its economy minister said earlier this month.
For the UAE as a whole, inflation probably accelerated to 20-year peak of 10.9% last year, from 9.3% a year earlier, National Bank of Abu Dhabi (NBAD) said last month.
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