After rocketing to a record high of 12.3 percent in 2008, the UAE inflation rate plunged to just around 1.5 percent in 2009 and is expected edge up slightly to nearly 2.2 percent this year and remain controllable in the following years, according to local and foreign officials.

Although there are no plans to end the peg between the UAE dirham and the fluctuating U.S. dollar, the post-crisis slowdown in the property sector and the slump in rents will ensure the inflation rate will remain low.
“There are now some mechanisms that will ensure that high inflation will not come to the UAE for many years,” UAE central bank governor Sultan bin Nassir Al Suwaidi said at a press conference this week.
“Property prices and rents in the country had been the main cause for the sharp rise in inflation over the past few years…the UAE is now more capable to monitor inflation and control its level in the coming period.”
(Source: emirates247.com)