Dubai's annual inflation eased to 0.2 per cent rise on an annual basis last month, underlining the UAE's divergence from higher price pressures elsewhere in the region.
A decline in food prices and no pick-up in housing costs meant inflation slowed from a 0.3 per cent annual rise in October, according to data released by the Dubai Statistics Centre.
"The price difference between the UAE and elsewhere is essentially to do with the housing component," said Said Hirsh, the Middle East economist at Capital Economics.
Weakness in the housing market, a shortage of bank credit and food-price controls have helped to keep inflation at bay in the UAE this year.
Abu Dhabi last week reported that its annual inflation rate eased to 0.6 per cent last month from 0.9 per cent in October.
The UAE's position contrasts with higher inflation elsewhere in the GCC as state-spending splurges feed through to the economy.
Oman's annual inflation edged up to 3.8 per cent in October, in part because of a rise in education costs, data released this week showed.
Saudi Arabia's inflation also remains high, although it softened to 5.2 per cent in October. Higher housing costs and large injections of government spending have driven prices upwards in the kingdom this year.
Sheikh Khalifa, President of the UAE, last month announced that some public-sector workers would get raises of 35 per cent or more starting next month.
However, the impact on inflation was expected to be limited, said Mr Hirsh. "In the UAE, we expect housing deflation to moderate a bit as the stimulus takes effect but we don't expect overall inflation to go beyond 2 per cent next year."
Inflation in the Emirates was likely to be lower than 3 per cent, Sultan Al Suwaidi, the Central Bank Governor, said in June.
In Dubai, food costs, the second-largest consumer expense in the index, dropped 0.8 per cent last month. Housing prices, the largest component, were unchanged for the second month in a row.