In July, inflation in UAE slowed to 1.3 percent, as residential and oil prices had their biggest monthly drop in more than a year.
Inflation slowed from 1.7 percent in June, according to the National Bureau of Statistics. Earlier, the International Monetary Fund projected an inflation rate of 4.5 percent for the year.
Residential, petrol, electricity and water prices fell 2.4 on the year, and by 1.6 percent from a month earlier, showing the biggest monthly decline since December 2009, when prices dropped by 1.2 percent, according to Bloomberg data. Consumer prices fell 0.16 percent from June.
Growth in the country is expected to accelerate to 3.3 percent in 2011 from 3.2 percent last year, the International Monetary Fund said in April. However, oil prices have recently slumped 14 percent.
The DFM Real Estate Index is down 17 percent this year, while ADX Real Estate Index is down by 38 percent in comparison to a 7.6 percent decline in the MSCI World Real Estate Index.
