Last year, global food costs rose at the fastest rate in a decade. It gave way to the question of it getting reflected in the price of regular foods in future. After gas prices hit a historic level in June, the price of groceries and other perishables in the UAE may rise. Although the UAE imports a huge number of commodities from other nations. This strengthens the dirham.
Transportation Cost Is The Culprit For Increase In Groceries Pricing
Transportation and distribution industries, according to a Dubai-based food dealer, will face the burden of the gas cost increase. Costs of daily essentials including fresh milk, bread, yoghurt, and other similar things could rise in the F&B sector. The reason is their distribution needs chilled vehicles, which consume extra fuel. Because the majority of food consumption in the UAE gets imported, and food prices are certain to grow when transport prices increase.
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However, one positive for inhabitants is that the dirham is pegged to the US dollar, and the dollar has strengthened in the worldwide forex market. This will indirectly increase the dirham’s value Moreover, a higher dirham helps to lower import prices, lowering rising inflation slightly.
Also Read:5 Hacks To Save Money On Groceries Amid Inflation
Rising Fuel Prices To Blame
From the land of the oil wells, we expect the fuel price to be minimal. But with the recent stir, it has come out bright that UAE will see a fuel price hike. Driving in UAE is going to get expensive soon. Here’s a guide on how to cut down spending on Fuel in UAE. Because UAE observed a hike in the petrol-diesel prices for June 2022. So if you are looking for hacks to save money on groceries, you should set a budget plan. Apart from budgeting, one can always try to gain loyalty schemes or wait for discounts to get cashback.
Also Read: Fuel Prices Increase In The UAE: Hacks To Cut Down On Petrol Costs