Consumers are really feeling the crunch. No more unnecessary drives. No more buying what they don't wear. Most important, however, is that they're no longer buying food in bulk and leaving most of it to rot. Cutting down on food expenses is the latest step most expatriates are taking to try to keep their monthly expenditures at bay, while the cost of living keeps spinning out of control. “I worry about the increase in housing rents and the cost of my children's education – two very basic expenses,” said Renato Garcia, a Filipino engineer. “Economizing food expenses will certainly help in keeping other basic needs affordable within our now limited incomes, as prices continue to rise as a result of inflation.” Garcia used to budget SR1,000 a month for food expenses, which is about 15 percent of his monthly salary. His family used to spend something in the neighborhood of SR125 on every shopping trip, eight times a week. Last weekend, however, his family spent SR165 on the same list of basic food items they always used to purchase for several months. “If I were to buy the same basic food items now with the current increase in prices,” Garcia added, “I would be spending SR1,320, or SR320 more every month.” “I cannot afford to spend this much, because all of my other expenses are already budgeted for.” Ahmad Al-Moneim, an Egyptian advertising executive, has more or less the same worries. He said he is now spending about SR50 more to buy the very same items he always used to buy last year. “God help us,” he said with a sigh, while he eyeballed the tabulated receipt he had asked the supermarket cashier to print out for him. “At least my son can skip drinking powdered milk now, since he is already old enough to eat more solid food now,” added Moneim. He said the price of the milk his son used to drink had gone up from about SR40 per 1,250-gram can to SR53 now. Even at that same small shop, which expatriates like Garcia and Moneim often frequent for its reputation of having cheaper prices, other shoppers were also complaining about rising prices. “Everything has gone up,” said a clearly irritated Abu Faisal, the owner. “What am I supposed to do?” A recent survey conducted by Bayt.com, a Middle Eastern online recruitment site, revealed that citizens and expatriates in the Gulf countries are spending a bigger portion of their monthly earnings for food as a result of inflation. In Saudi Arabia, according to Bayt's survey, 35 percent of the population is spending five to 15 percent of their monthly paychecks to purchase food. However, the Bayt adds, the percentage of the Saudi population that spends five to 30 percent of their incomes for food has now risen to 81 percent. That percentage is the same in Oman, but both countries are still below Qatar at 83 percent, the UAE at 84 percent, and Kuwait's 85 percent. In Bahrain, the portion of the population who spends five to 30 percent of their monthly incomes on food is still around 78 percent, Bayt's survey claimed. In other countries in the Middle East, the percentage of nationals spending that much of their monthly incomes on food is much less than in the six Gulf Cooperation Council (GCC) states. For example, only 46 percent of Egyptians spend five to 30 percent of their take-home paychecks for food. That compares favorably to 61 percent in Syria, 64 percent in Jordan, and 66 percent in Lebanon. The survey also indicated that the costs in medical bills for those without medical insurance, as well as costs of travel, entertainment, children's activities, education, clothing, transportation, and automotive maintenance, have all gone up. As of the end of last month, the average inflation rate in the Gulf region has been estimated at 7 percent, with Qatar topping the list at a whopping 14 percent. Shop owners said fewer consumers are picking up items the prices of which have taken an upward trajectory. “Okra, which is SR24 per kilo(gram,) and tomatoes, which are a riyal dearer now, are rotting on the shelves because people no longer buy them,” said a still-anxious Abu Faisal. He added that more consumers are now springing for cheap, unknown brands, for no other reason than the fact that they cost less. The community had welcomed the 20-percent subsidy decreed by Custodian of the Two Holy Mosques King Abdullah Bin Abdul Aziz, which applied to basic food items like rice. However, many consumers said the subsidy would not be able to hold down runaway costs in other sectors of the economy. “Most people, especially expatriate workers, are still expecting an increase in salaries,” said Garcia, the engineer. “The rumor mill is firing on all cylinders to churn out one speculation after another. I hope it will come true.” Moneim, the ad man, was equally optimistic. “An increase in salaries for all employees in the private sector will be a big relief,” he said. __
