Thursday 26 May 2011

UAE to fix food prices as global commodities rise | Reuters

The United Arab Emirates plans to combat rising global commodity prices by fixing the cost of about 400 foodstuffs and household products at 70 outlets in the Gulf Arab state, an economy ministry official said on Thursday.

This is the latest of several moves by the UAE, which has so far avoided the unrest that is spreading across the region, to cut prices and subsidise basic items. Rising food prices have become hugely sensitive around the world, helping fuel protests that toppled the rulers of Tunisia and Egypt earlier this year, with unrest spreading across North Africa and the Middle East.

The measure, starting on June 1 and so far set until the end of the year, is expected to help retailers including France's Carrefour (CARR.PA) and be easily absorbed by the oil-rich country that imports most of its food and already subsidises other consumer goods.

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