Business | Economy
Rising food prices follow a global trend, says retailer
Steadily rising food prices are more related to the global trend rather than other domestic inflationary pressures, according to a major retailer in Abu Dhabi.
- By Ahmed A. Elewa, Staff Reporter
- Published: 00:22 November 21, 2007
- Georges M. J. Mojica, the general manager of Abu Dhabi Co-operative Society.
- Image Credit: Supplied Picture
Abu Dhabi: Steadily rising food prices are more related to the global trend rather than other domestic inflationary pressures, according to a major retailer in Abu Dhabi.
The increasing costs of raw materials and poor harvests in addition to growing global demand have all contributed to the increase in food prices, said Georges M.J. Mojica, the general manager of Abu Dhabi Co-operative Society (ADCS).
"Prices of many major agricultural and dairy products have gone up significantly, such as wheat which shot up by 50 per cent and other essentials like milk, eggs, flour, oil, rice and corn," he said.
The overall inflation rate has been on the rise in the UAE due to many factors including the weakening dollar, rising rents and increasing government fees.
"Internal factors are also playing a role in pushing prices further up, of which most important is the rising cost of commercial space," Mojica said.
He said the blame cannot be put on the retailers who have to adjust prices accordingly while facing other burdens such as rising labour and transport costs, and government fees.
"ADCS has a social objective as the bulk of its returns go back to the society through various vehicles, and what we need is the support of the municipality, as is the case in Dubai, by providing us with a preferential treatment in terms of rentals," he said.
The increasing costs facing retailers have pushed up food prices significantly.
"Meanwhile, the price indicators provided by the Ministry of Economy cannot be useful with such a changing variable. What is badly needed is a well studied Consumer Price Index," Mojica said.
The Ministry of Economy announced in April that a year-long national survey is under way as the first phase of a process of issuing a more accurate consumer price index.
ADCS is the leading retail outlet in the capital, accounting for an average number of 30,000 customers per day. It is working on an expansion plan to double the number of branches across the UAE.
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