Dubai: Consumers are having a good year. A Gulf News reader survey and analysis by an expert shows that the prices of essential food items in the country have remained stable in 2010. In some cases, they have dropped.
Simon Williams, a UAE-based economist, told the newspaper that he believes "there is no pressure to increase prices" because inflation is under control. There is not enough demand for the prices to go up, he said.
"I do not expect prices to increase more than one per cent this year," Williams added.
Readers who spoke to the newspaper echoed his sentiments. Naina Nair, a mother of two based in Sharjah, said: "Food prices have remained quite stable throughout the year".
Relief
She said that it was a relief that prices had not increased. "I am hoping that this trend continues," Naina added.
Compared to 2009, prices of Basmati rice dropped by 20.5 per cent, those of onions fell by 11 per cent and those of oil declined by 20 per cent. The prices of potatoes have been stable.
Williams said he expects the trend to continue unless there is a change in the value of the dirham or global food prices rise dramatically, in which case the UAE would be affected because it relies on imports.
Another reader, Matt Toogod, has a solution for that, too.
"I try to buy local produce as much as possible, as it is cheaper and fresher. I would not pay more for a product that was flown in," he said.
Purchasing locally-produced items also helps to reduce one's carbon footprint.
Many readers who are experiencing the positive effect of low prices are also engaging in bargain hunting.
Cutting costs
Darwin Reyes, from Dubai, said he always looked for the best prices. "We are buying bundle promotions whenever there is a sale".
He said his family go from shop to shop to get the best value for money.
His wife, Maureen, added: "We normally go where they always have the best price offers".
Do you pay attention to the price of essential items when shopping? Have you noticed a change?
