Effects Of Inflation On The United Arab Emirates

1764 Words Dec 15th, 2014 8 Pages
The Meaning of inflation
Inflation is an economic term meaning the continuing rise in the prices of goods and services, inflation is a constant concern of society and decision-makers, and one of the main challenges of monetary and economic policies in the state, which requires knowledge of the origin of and reasons for the high prices in order to develop scientific mechanisms to control the rising prices, and in order to maintain the level of a decent life for humans and the community to achieve security and peace.
The evolution of inflation in the United Arab Emirates
Inflation is a danger in the rapid and significant decline in the purchasing power of the AED for consecutive years, and this is what happened during the last three years in the UAE, the increased inflation that the ability of the Ministry of Economy of consumer prices in 2000 prices from 5% in 2004 to 6.2% in 2005 to about 9.3 index % in 2006; to about 14% by the year 2007 Truth economic Consultants expectations.
There are several reasons behind the rise in inflation rates, including:
1. high rents.
Item housing is an important part of the spending monthly prisoners with a 35 household budget% and that percentage has increased to up to 45% of the monthly household income in 2007 and of course the high demand for housing as a result of population growth rates with no keep up with the offer of this increase leads to rising rents levels than necessarily reflected in the rates of inflation and because the…

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