note: original post is from todays gulfnews
http://gulfnews.com/opinion/columns/.../10163344.html
As for Dubai inflation, its part property market, part increased prices on imported goods from not only Europe but also SE Asia and India as the currencies gain against the AED and part speculation/greed.
Depending on who you are is how you distribute the cause of inflations between them.
1/3 of the apartments in marina are empty because landlords are speculating rents will keep going up and they will avoid the current rent cap (so much for market forces).
The government is increasing transport cost with tolls and the ever increasing paid parking in residential areas. Also the government does not mind the increasing rents because of the 5% civic tax included in the electric bill.
Also coming is a sales tax in the near future that they are working on.
Inflation is not the issue and never will be, its inconvenient for everyone but the issue is retaining as much of the money earned by expats in the local economy instead of having it sent home.