Food price inflation in UAE could hit 40%

Abu Dhabi: Food price inflation in the UAE could rise up to 40 per cent this year from the already high 27 per cent, a top official said.

"The inflation rate of food prices in the UAE was between 27 and 30 per cent in 2007, according to a survey concluded by Emirates Consumer Protection Society (ECPS). This figure can rise to 40 per cent in 2008, unless strong government intervention takes place by introducing a basket of efficient measures," Dr Jamal Al Saeidi, director of ECPS, said. He demanded increased government subsidies on fuel.

The UAE Union of Cooperative Societies had announced last year that its members will directly import goods, cancelling out the role of suppliers and relieving prices from some of the pressure.

"Cooperative societies must diminish their margin of profit when selling basic and essential goods. Many GCC states provide direct subsidies through direct imports from the countries of origin," Dr Al Saeidi said.