"Dubai’s inflation rate of less than 1 percent doesn’t capture the surging cost of living in the desert emirate, especially for the expatriates who make up most of its population.
The government reported inflation at 0.9 percent in April, while the housing index, which includes water and electricity and is the biggest component, rose 0.8 percent. By contrast, real-estate companies such as Jones Lang LaSalle Inc. and Cluttons LLC show annual increases in rents and home prices ranging from 10 percent to as much as 88 percent.
The divergence is part of a pattern that shelters Emiratis from inflation. They’re less likely to rent, have access to free government schools, and say they receive assistance with utility bills and are exempt from a housing tax. Foreigners, about 90 percent of the 2.2 million population, are exposed to higher costs in those areas, even as salaries are capped by growing demand for jobs in Dubai."
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