cd4a8aaa1e688210VgnVCM100000e56411acRCRDapproved/thenational/Articles/Migration/2009-Q1Take the measure of inflationbd4a8aaa1e688210VgnVCM100000e56411ac____No one is pleased when prices accelerate too quickly: according to the last inflation report, they grew by 12.2 per cent. Consumers are happier when costs decline, though they may not immediately appreciate the connection between lower prices and lower economic momentum.<p>No one is pleased when prices accelerate too quickly: according to the last inflation report, they grew by 12.2 per cent. Consumers are happier when costs decline, though they may not immediately appreciate the connection between lower prices and lower economic momentum: cheaper goods and services are not an unalloyed blessing. Still, recent trends are a reason for relief for residents long used to prices briskly moving in only one direction: up. Like everywhere else in the world, prices in the UAE have been in decline. But unlike almost everywhere else - and in particular, economies comparable to that of the UAE - there is no means of judging the precise level of change. The inflation report we mention above was released a year ago. Not only that, it excluded Abu Dhabi.</p> <p>Inflation data are an important tool of business planning. A knowledge of price trends facilitates more prudent expansion and budget planning. Expenses, including wage and operational costs, can be better anticipated if a detailed price history is available, which can then be extrapolated under various scenarios. As it is, commercial calculations are being made according to estimates and anecdotal evidence. Such budgetary calculations apply as much to families and individuals.</p> <p>Just as important, the expanding breadth of commerce in the UAE argues for a larger range of economic data to be made available to policymakers. Among these, inflation figures would make a timely addition to the economic gauges already in place. The regular compilation and release of detailed price trends for a basket of goods and services would paint a fuller picture of the nation's economic condition. This would provide the Central Bank and policymakers with an important means of judging the performance of the economy, and thus to further calibrate the levers of monetary policy when necessary. This is perhaps even more important today, given the significance of demand conditions both here and abroad.</p> <p>Finally, apart from everything else, assembling a fuller complement of economic measurements would accord with the country's aim of achieving world standards across the spectrum, economics included.</p> 13,84YYOPINION2009030400000020090304000000100ARhttp://adedit.ad.atl.publicus.com/apps/pbcs.dll/article?AID=/20090304/OPINION/929803049592980304920090304100000000