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7 ways UAE beats rising prices, minimises inflation – News

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The country approves a new policy to rein in rising prices of basic food items



Pictures are for illustrative purposes.

Pictures are for illustrative purposes.

reporter

Posted: Friday, September 2, 2022, 8:29 am

Global supply chain disruptions caused by the coronavirus and the Russian-Ukrainian war are among the global issues driving up fuel and basic commodity prices. The UAE is doing everything in its power to minimise the local impact of rising global prices and has managed to achieve some of the lowest inflation levels in the world.

Prices of basic groceries fell as fuel prices in the UAE fell to a six-month low in September, retailers reported.

Here’s how the country has managed to keep prices in check:

— Prices of basic items cannot be increased without approval

Earlier this year, the UAE Ministry of Economy approved a new policy to rein in rising prices for basic food items. Under the policy, suppliers must submit evidence to justify price increases for some of the most popular items, such as fresh milk and milk powder, fresh chicken and eggs, bread, flour, sugar, salt, rice and beans, cooking oil , mineral water, etc. This group includes more than 11,000 items, and suppliers who want to raise their prices due to high import costs must submit all relevant evidence and data. The ministry will then decide on approval and rate hikes.

— Limiting the impact of rising global prices

In July, Economy Minister Abdullah bin Touq Al Marri said that the UAE has mechanisms and policies in place to control any unreasonable rise in commodity prices. The ministry is working with local economic ministries and chambers of commerce and “relevant partners in the private sector” to study global commodity price increases. They then worked together to “limit the impact of any global price increases for these commodities on the final product sold on the country’s market”.

— Inflation allowance for low-income citizens

President His Highness Sheikh Mohamed bin Zayed Al Nahyan directed to restructure the social welfare scheme for low-income citizens and double its budget from AED14 billion to AED28 billion. As part of this plan, the country has announced the following inflation allowances:

> gasoline: A subsidy equivalent to 85% of the fuel price will be offered to some low-income Emirati households if the rate exceeds Dh2.1 per litre. The head of the household receives a monthly allowance of 300 litres, while the working wife receives an additional 200 litres.

> Food: The government bears 75% of the inflation rate for food prices for low-income citizens. The value of the subsidy is related to changes in the inflation rate of basic food items. Allowances are available at approved merchandise and food points of sale.

> Electricity and water: The program for low-income citizens provides a 50% monthly subsidy for those who consume less than 4,000 kilowatts of electricity. 50% monthly subsidy for those who use less than 26,000 gallons of water.

Also read:

— new allowance

As part of the social welfare scheme, additional allowances were introduced for low-income citizens: housing, university education, unemployed Emiratis over the age of 45 and unemployed job seekers.

– Allowance increase

The social welfare scheme increases allowances for heads of households, wives and children.

sahim@khaleejtimes.com

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