The United Arab Emirates (UAE) economy as a part of the global economy paid a high cost to eliminate the inflation rate. The global financial crisis brought deep recession even in the most developed countries. The crisis obviously attacked the UAE economy as well. One benefit gained was to lower the inflation rate from 12.3% (2008) to roughly 1.5% (2009) as released by UAE National Bureau of Statistics. The paper examines the problem of high and continuous inflation rates in the UAE during the last decade. So, we will start with an intensive summary of macroeconomic theory which will put a theoretical framework of inflation. This step is necessary to lead the analysis of inflation in UAE. Then, we will shed light on the recently collected data from primary sources and information about overall level of prices and inflation rates in the UAE during the last decade. Figures should be examined to judge the quality of published data. Then we will discuss the effects and social costs of high inflation rates in the country. After reading and analyzing other views, we will investigate causes leading to the problem which are related basically to rapid growth of money supply, excess aggregate demand and the effect of heavy dependence on imports as a ratio to the gross domestic product. Finally, we will suggest solutions as how to control and eliminate inflation rate by using the tools of monetary and fiscal policies, in addition to some recommendations based on supply side policies. Al-Jundi, S. (2012). Inflation in United Arab Emirates. Economic Horizons, 33(121), 9-36.