Business | Economy
UAE retail chain calls for dialogue to rein in prices
A retail chain in the UAE on Monday called on the government to hold a dialogue with traders to find ways to curb inflation.
- By Cleofe Maceda, Staff Reporter
- Published: 00:41 March 18, 2008
Dubai: A retail chain in the UAE on Monday called on the government to hold a dialogue with traders to find ways to curb inflation.
Ashraf Ali, executive director of the LuLu Group of Companies, said the pressure to tame inflation should not be exerted on retailers alone, as suppliers and distributors are the ones that dictate prices.
"It is high time that all of us sit down together and find a solution to how we can control prices. We should not be blamed alone for the rising prices because we are the last link in the chain of supply. No established or reputed retailer increases prices on its own," Ali told Gulf News.
The World Programme earlier warned that the global price of food could continue to increase until 2010, due to high energy and grain prices, the demand for biofuels and the effects of climate change.
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To alleviate the situation, the UAE recently urged consumers to monitor price increases and report errant traders to the Consumer Protection Department.
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It also signed an initial agreement with a cooperative supermarket chain to maintain 2007 prices in 16 basic foodstuffs throughout this year.
Union Co-Op will spend Dh45 million to absorb expected food price increases of up to 40 per cent in 2008 and the Ministry of Economy hopes other supermarkets will follow suit.
Ali said they have been doing their part to curb inflation by offering alternative goods at competitive prices and sourcing their items directly from manufacturers from around the world.
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