Bread prices surged by more than 11 per cent in 2007 despite a decline in the price of wheat – with experts blaming the surge on high fuel costs.
Official figures showed fish recorded the highest price rise in the food and beverage category in the country's consumer price index (CPI) although the UAE is one of the largest Arab fish producers and has 100 per cent self sufficiency in fish.
The CPI details issued by the Ministry of Economy showed bread prices soared by 11.4 per cent while wheat and wheat flour slipped by 1.8 per cent last year.
Other cereal products declined by 2.5 per cent.
"The main reason for the rise in bread prices is the sharp increase in fuel prices, which made factory operation and transport means costlier. There were also increases in the prices of some ingredients of bread," said a manager of a leading bakery in Abu Dhabi.
The index showed rice prices swelled by around nine per cent while meat and poultry surged by 12.8 per cent. There was a sharp increase in the price of fresh meat, which soared by 14.4 per cent and frozen chicken, which leaped by 22.9 per cent.
In the food category, fish recorded the highest price growth in 2007, jumping by 15.6 per cent despite an increase in the fish production by nearly 10 per cent to more than 100,000 tonnes, according to estimates.
Experts said the increase was mainly due to higher prices of diesel and fishing equipment.
The index showed the prices of several other food items declined slightly or recorded relative stability.
The surge in the price of some foodstuffs has allied with a bigger increase in rents and a higher import bill to push up UAE inflation to a record 11.1 per cent in 2007.