Thursday, February 14, 2008

The true face of inflation

I'm sure that there can't be anyone living in Dubai who believes the official inflation figure of around 10%.

I suspect that even the people who come up with them don't actually believe it themselves.

Gulf News has compiled some figures on the real increase in food costs. They say:

"Basic food prices in the UAE have risen a staggering 36 per cent."

Staggering? Isn't it what anybody who buys food already knows?

They give some typical examples:

"*Price of Basmati rice has shot up more than 50% from Dh15 for 5kg to Dh22.70

*A two litre bottle of cooking oil has increased 80%, from Dh10.85 to Dh19.60

*Indian mutton has gone through the roof from Dh13 a kg last year to Dh28 per kg

*A whole chicken now costs Dh17.25 as compared to Dh10.35 last year

*A 30-egg tray costs Dh14.60 today. Last year it was Dh12.30"

It isn't only food prices. Far from it.

We have Salik road tolls that are new. Rents going up by huge amounts, in spite of the rent cap. School fees jumping by very large percentages. Travel costs up with taxes and fuel surcharges.

Wouldn't it be interesting to see the true inflation figures.

The Gulf News report is here.


LDU said...

Doesn't inflation reflect a healthy and competetive economy? Like when there's lots of competition for goods, prices jump...

Seabee said...

Ah, if only that was true!

Anonymous said...

The only solution is to leave this God forsaken materialistic merciless hot humid desert and head back home with our dignity and sanity intact.