Abu Dhabi authorities vowed yesterday to tighten their grip on key shopping outlets during Ramadan to ensure compliance with stable food prices following a surge of more than 12 per cent in July.
The Abu Dhabi Department of Planning and Economy (DPE) said the food price index, which measures the prices of key food items, jumped by 12.4 per cent to 20.17 in the last week of July from an average 17.94 per cent during June. The newly-created index had sharply fluctuated over the past two months, rising to 19.51 in the first week of July and 19.96 in the second week before slipping in the third week.
It then surged to 20.17 in the last week of the month.
The DPE said a sharp rise in fish prices was the main cause of the fluctuations in the index and cited some fish suppliers blaming high cost of ice and transport of some types of fish from Dubai for the large increase in prices.
"The statistics division at DPE has selected a large list of food items and set prices for them so it will closely monitor the price movement on a weekly basis during Ramadan… the list includes all the basic needs of consumers and the index will be published on a weekly basis during Ramadan," DPE said.
"As for the past two months, the DPE found that the rise in the index was a result of an increase in the prices of some basic items, especially fish," it said.
According to the report, DPE inspectors have revealed a large difference in the prices of the same types of fish at various supermarkets, with the Abu Dhabi Co-operative Society selling at much higher prices.
"The reason was that the fish at the Society was obtained from another supplier, who had signed an agreement to get 10 per cent to 20 per cent profit… that supplier said he was charging more because the fish was imported from Dubai and was quite different from the one available in Abu Dhabi. Besides, the ice used to store it had also increased," DPE said.
The DPE inspectors also found that there was a big gap in rice prices, with a five-kg bag of Pakistan's basmati rice priced at between Dh37 to Dh42 at Fatima Supermarket, while it was selling for Dh62 at other outlets.
"A team from the trade protection section contacted the main rice supplier and it was found that the official price was Dh35.6. The team then alerted Abu Dhabi Co-operative Societies and they responded by reducing the price from Dh62 to Dh42.5."
The DPE launched Abu Dhabi's first regular consumer price index (CPI), comprising more than 50 food items, last month and said the index would be updated and made available on a weekly basis at its website and main shopping outlets.
The index for June and May showed there was a surge in the prices of rice, fish and meat but the price of most other listed items recorded relative stability, indicating that recent agreements between the UAE Government and major marketing outlets have succeeded in controlling the prices of many consumer products.
"In a bid to maintain consumer awareness at the highest possible level, the Department of Planning and Economy in Abu Dhabi has launched a commodity index to monitor price trends of essential commodities," it said.
"The commodity prices index is a vital project that would help create a positive and competitive climate for prices in Abu Dhabi."
Yesterday's report confirmed plans to publish the price lists and offer foodstuff packages at key shopping outlets during Ramadan, which will start next month.
The report showed prices of most food items at four main supermarkets – Lulu, Carrefour, Fatima and Abu Dhabi Cooperative Society.