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UAE: Prices of onions, bread up to 50% lower than in Western countries

Bread, cheese, fruits and vegetables, and soft drinks are significantly cheaper in the UAE than in the United States and Europe. This is made feasible by the government's initiative to push for price freezes, lower gasoline prices, increased local production of perishable items, and a stronger dirham, which makes imports less expensive. According to local shopkeepers and economists, the UAE's low taxes cause the prices of some commodities, like fruits and vegetables, to be more than 50% lower than in some industrialized countries. Inflation has been a source of concern for governments around the world. While the rest of the world has been hit by increasing food and fuel prices, the UAE has experienced lower inflation. Inflation in the UAE stood at 6.77 percent, lower than nine percent in the European countries and nearly at par with the US at 6.5 percent. Recent shortages of onion, wheat, and other commodities in the Philippines and Pakistan have resulted in enormous price rises in both nations. In the UAE, housing (utilities), transportation, and food prices currently account for over 60% of the consumer price index (CPI) basket. According to Vijay Valecha, chief investment officer at Century Financial, housing and utility expenses in the CPI have fallen for the most part during the last three years, barring the recent uptick in rent rates. "Much of the credit to stable food prices can also be attributed to the UAE Cabinet decree freezing prices of essential commodities," he said. The UAE cabinet approved a new pricing strategy for critical consumer items in November 2022. Products such as cooking oil, rice, sugar, dairy, bread, and wheat fall under this category. Furthermore, suppliers that seek to raise their pricing owing to high import costs for all necessary everyday FMCG and consumer products must present all required information and data to the authorities. BKM/ Expat Media
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