82381
UAE Inflation  to Rise to 3.3%
UAE Inflation  to Rise to 3.3%

UAE Inflation to Rise to 3.3%

UAE Inflation to Rise to 3.3%

Inflation is expected to rise to 3.3% in the UAE as the 5% value-added tax in place since January and higher oil prices will trickle down to make goods and services dearer, BMI Research said in a report. The latest forecast from the Fitch subsidiary is a revision of its earlier estimate of 3.1% after BMI updated Brent pricing to $65 per barrel for 2018 from $57 previously, Yahoo reported. “This will lead to an increase in transportation prices—10% of the consumer price index basket—given that fuel prices have been deregulated since 2015. Higher oil prices will also support domestic demand, putting upward pressure on inflation,” the report said. Saudi Arabia and the UAE introduced VAT in January to narrow fiscal deficits that had widened over the last couple of years as oil prices fell from $115 per barrel in 2014 to just under $30 in the beginning of 2016. The slump in the oil market has also pushed through a more aggressive diversification program in these economies, with Saudi Arabia, the world’s biggest oil exporter looking at privatization initiatives, including the planned sale of a 10% stake in cash-cow Saudi Aramco this year.

Short URL : https://goo.gl/9QiCJE
  1. https://goo.gl/eejbpd
  • https://goo.gl/wFSAqG
  • https://goo.gl/X4TemA
  • https://goo.gl/g1DyzR
  • https://goo.gl/ByqdQh

You can also read ...

Taiwan Consumers More Upbeat on Economy
Confidence in Taiwan’s economy edged higher in September after...
Apple Begins Selling IPhone XS, XS Max Worldwide
Apple’s newest iPhone XS went on sale worldwide Friday as...
Lower-income families, already pinching pennies, are most exposed, given the likelihood of tariff-related price increases on everyday items.
China canceled trade talks with the US and will no longer send...
Dairy Exports Hinder US-Canada Deal
One of the last remaining points of contention in the trade...
Turkey, Venezuela Plan to Use Local Currencies
Turkey and Venezuela are eager to use local currencies in...
EU foreign affairs chief Federica Mogherinia (L) and Transport Commissioner Violeta Bulc present the proposal  for an EU strategy for connecting Europe and Asia.
While European Union leaders were in the middle of another...
Japan to Resist New Auto Tariffs
The Japan-US ministerial-level trade talks scheduled on Monday...
Pakistan Seeks  to Increase  Exports to China
In a positive development, an important mission from China is...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus