What if you have not bought gold?

It seems inflation is back with a vengeance. Gold topped out at $1,000 an ounce, and oil at more than $100 per barrel. They were adequate signs, and their retreat below those benchmarks doesn't change the essential issue: prices are rising too quickly.

A roll of tissue, a pack of milk or a bag of rice is noticeably more costly - and so doubtless is your one-bedroom flat. The message has spread; the weekly shop tells you anyway.

Some analysts say inflation isn't always something to cry about because it is a sign of a growing economy. They say people often ignore the fact that while inflation is soaring, their wages are rising as well.

But what worries the average consumer is that his or her income is not rising as fast or faster than the cost of living. It is ironic that the region is becoming increasingly wealthy, but because of inflation, so many experience a net reduction in income and wealth.

An online survey conducted by job site Bayt.com and YouGovSiraj recently showed that there is growing discontent among workers as incomes fail to match the soaring cost of their everyday requirements. Their plight is compounded by the fact that their remittances have dropped in value due to the declining dollar.

So it is understandable that many people now consider quitting their jobs and moving outside the country. In Qatar, Oman, Kuwait and the UAE, increases in household expenses have led many respondents to believe that relocating to another country or returning home is a better option.

Disappointment

The disappointment among consumers, especially the low-income ones, is not hard to find.

Take for example Emily, who's working as an executive assistant in Dubai. Her boss recently gave her a Dh1,000 monthly rise. However, not long after, her landlord showed up with a notice that her house rent has gone up, and now she has to spare more than Dh1,000 every month to cover the increase. Her logical thought-processes have kicked in, and she's considering leaving the company and migrating.

Indeed, inflation has replaced consumers' previous optimism with a deep worry. With prices rocketing and money transfers losing value, many feel that the economy is depriving them of the rewards of hard work and thrift. As their concern grows, the region's competitiveness for migrant workers is increasingly threatened.

If no cure is in sight to fix the widening gap between income and the rising cost of living, it can become a broader issue, as it becomes difficult to attract or retain workers in the region. There may be no perfect solution to tame inflation, but cushioning the effects of its severity might have to come to the fore.

Indeed, inflation has replaced consumers' previous optimism with a deep worry. With prices rocketing and money transfers losing value, many feel that the economy is depriving them of the rewards of hard work and thrift.