UAE: inflation is set to drop this year due to softer price increases.

The cost of living is set to drop in the UAE in 2023 and 2024 on the back of a slower rise in different segments of the economy as well as the disinflation trend in other countries.

The UAE Central Bank has projected that inflation in the country will decelerate to 3.2 percent due to softer price increases in all categories, especially transport and food and beverages.

'Imported inflation is expected to be modest owing to the disinflation trend worldwide, while rents and wages are also expected to contribute moderately. In 2024, inflation is projected to slow further at 2.8 percent, in line with global trends,' the Central Bank said.

The cost of living started rising as the country began recovering from the...