Business | Markets
Cost of basic commodities on the increase in the UAE, data shows
The cost of basic commodities in the UAE increased in the last month, according to data released by the Ministry of Economy on Tuesday.
- By Natasha Marrian, Staff Reporter
- Published: 23:15 November 25, 2008
Dubai: The cost of basic commodities in the UAE increased in the last month, according to data released by the Ministry of Economy on Tuesday.
Prices for commodities in Dubai stores were not provided this week.
The price of red onions increased in Abu Dhabi stores from Dh1.90 to Dh1.95 at Lulu stores, with white bread going up from Dh1.95 to Dh2.75 at Union Co-Operative stores in the emirate.
The price of mutton increased from Dh19.25 at Union Co-operative stores in Abu Dhabi, but declined at Lulu stores from Dh25 to Dh20.90.
The price of rice decreased at Carrefour stores in Sharjah as well as in Ajman. The cost of pineapples and bananas dropped slightly in Fujairah.
The prices of basic commodities have increased steadily this year, causing consumers to tighten their grocery budgets.
According to Choitrams Director Manoj Thanwani, however, rising costs have not dented demand.
"We have not observed any visible reduction in consumer shopping patterns at our stores. There are several reasons for this, such as our collaboration with the Ministry of Economy in the Price Fix 2008 initiative and our efforts to provide consumers with discounts on the necessities," he said.
Thanwani added that the global financial crisis had not yet hit the sector.
"Due to the global financial crisis seen in 2007-2008, there was a high volume of goods imported into the UAE in order to ensure availability and static pricing levels for the long term.
"This has left many importers holding high levels of goods and, hence, not increasing prices. We ourselves have been in a position to reduce prices due to a decline in fuel surcharges and, simultaneously, a decline in currencies such as the pound, the euro, the Canadian dollar and the Australian dollar," he said.
Thanwani added that the worse of the price increases were over and that the situation was normalising,
"We believe we have seen the worst that was expected in terms of price increases due to shortage of commodities, increased costs in raw materials, resultant higher fuel prices and an increase in fuel surcharges for both goods imported and also inland haulage charges," he said.
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