The Price of Prosperity

According to a local report, huge hike in prices made living in the United Arab Emirates (UAE) unbearable for both expatriates and nationals. It has been affecting lower income groups and forcing many residents to return their families to their country of origin.

Some people believed that this domestic inflation is partly blamed on the UAE dirham's peg to the US dollar. Prices of commodities, food stuff, rents and garments have hit the roof with 300% increase in the last two years.

This has indeed resulted in creating family conflicts as many children were abandoned just because they were separated from one of their parents. Salary increase was thought to be a key factor that has enticed the traders to raise prices taking advantage of the absence of monitoring and oversight mechanisms. From time to time there were news about an increase in the prices of major items. For instance, the price of rice increased by 20%. Indian mouton price has increased by 50%. Local people condemned that the daily hike in prices has become a burden on the their shoulders but the government is still turning a deaf ear to all these problems.