The main reason for inflation is increasing rents, the reason for increasing rents are because locals are blindly increasing their rents. Starting from small shop owners to big companies are worried about this. What they do in turn? they increase the prices and goods they are dealing with. Barber increasing hair cutting charges, grocery owners increasing the margins etc..one more reason behind the inflation is increase in number of intermediaries which results due to laziness of locals. Locals simply decide on a rate for their property and rents it to an arab, next arab sub rents it to an asian, then asian subrents it again to end users. Here in each stage everyone is keeping a high margin. If the authorities can't take measures to control this it would sound like an indirect tax imposed on expats hard earned income.
The main reason for inflation is increasing rents, the reason for increasing rents are because locals are blindly increasing their rents. Starting from small shop owners to big companies are worried about this. What they do in turn? they increase the prices and goods they are dealing with. Barber increasing hair cutting charges, grocery owners increasing the margins etc..one more reason behind the inflation is increase in number of intermediaries which results due to laziness of locals. Locals simply decide on a rate for their property and rents it to an arab, next arab sub rents it to an asian, then asian subrents it again to end users. Here in each stage everyone is keeping a high margin. If the authorities can't take measures to control this it would sound like an indirect tax imposed on expats hard earned income.