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Inflation in Ramadan
Published in The Saudi Gazette on 19 - 08 - 2008

Recent increases in consumer goods have worried expatriates ahead of Ramadan especially with inflation at a 30 year high.
According to a report by the Ministry of Economy and Planning's Central Department of Statistics Saudi Arabia, the cost of living index rose to 115.5 points by the end of June from 114.4 points last June. “Lentils, which used to be SR4-5 per kilo last year are now SR8-10 this year. Price of rice has soared more than 100 percent in the past year and- a-half. A bag of 10 kilo rice which cost SR28-34 is now SR70-74,” complained Mohammad Mursaleen, a flour-mill shopkeeper. “This time many expats are showing less enthusiasm in purchasing food. They have become frugal. My business used to excel ahead of Ramadan.”
The report also stated that food and beverage costs increased 15.8 percent in June compared with an increase of 15.1 percent in May, increasing annual inflation up to 10.6 percent which includes the upward spiraling prices of rents, fuel and water as well. Many housewives are complaining of the increased cost of staple food like rice, wheat flour, oil and lentils. They are concerned about the additional expenses for this years Iftars, which every Muslim has regardless of their nationalities. Humera Niazi, an Indian housewife lamented “Having seven family members and thinking of saving some money while spending on basic necessities is like a joke now. Every year in Ramadan I used to buy extra spices and other food stuff for Iftar but this time I have restricted my budget due to high cost of food.”
Irum Khan, a Pakistani housewife said inflation is becoming an endless struggle. “Fried foods is a Pakistani specialty for Iftar. No iftar is complete without them, but the high price of oil is forcing me to think otherwise. Moreover, the price of wheat flour is also upsetting.”
Sukaina Meer-ul-Islam, a Bangladeshi woman said “It seems important that inflation has become less important as Ramadan approaches. People are more anxious about the prices of commodities than Ramadan itself.” Many low paid workers are also worried after the restriction imposed on mosques to arrange Iftar. Ibrahim Mulla, a Bangladeshi guard said “I never worried about Iftar before. I used to go to nearby mosque, but the new rules by the ministry of Islamic affairs created something else for me to worry about. Even if the government arranges Iftar anywhere I have to spend my money to get there.” Supermarkets are offering discounts on consumer goods to facilitate consumer spending.
Syed Khurram, a sales manager at a supermarket said “Inflation has definitely lowered the purchasing power of customers. But the enthusiasm for Ramadan shopping has not decreased because of great discount offers.” __


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