Every now and again a national statistic crosses this desk that is so obviously wrong as to be absurd. Take Dubai CPI inflation of 0.1 per cent for 2012. No matter that house price rental inflation ran at 10-20 per cent last year, and that this comprises around the third of the average family budget.
That’s without considering the hike in health insurance or the higher food prices in the supermarkets. Partly this is down to a strong cyclical recovery from the nemesis of 2009, and partly record regional oil revenues and Arab Spring immigrants, safe haven tourists and additional GCC government spending to keep people happy. Still it all adds up to inflation.
Inflation all around us
Dubai is hardly alone. The Indian Governmet is struggling to contain rising inflation. China is putting curbs on property investment in a desperate bid to cap inflation. The Bank of England admits it has allowed three rather than two per cent inflation for 90 per cent of the time over the past decade. The Bank of Japan would like more inflation and has started printing more money to cause it to happen.