Inflation has followed very different paths in the Gulf’s two largest economies, Saudi Arabia and the United Arab Emirates, in recent months. In Saudi, consumer price inflation has continued to fall, with the headline rate coming in at 2.6% y/y in March, the lowest it has been since early 2012. This has largely come on the back of easing food price pressures. By contrast, inflation has picked up in the UAE, in part because the revival in Dubai’s property market and the removal of caps on annual rent increases in Abu Dhabi have pushed up housing inflation to its highest rate in almost five years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services