Double-digit surge in Abu Dhabi food prices during the first six months of the year is being blamed for the 1.3 per cent rise in the Consumer Price Index, which measures increase in prices.

The single biggest rise of 64.4 per cent was recorded in the prices of food and non-alcoholic beverages, which resulted in escalation in the index.

The largest price increase was in the meat, which surged 10.9 per cent, followed by fish and seafood at 10.3 per cent, coffee, tea and cocoa at 9.4 per cent, oils and fats at 6.9 per cent and milk, cheese and eggs three 
per cent.

When asked to comment on the increase in the prices of certain food stuff, an importer said that rise in US dollar value against Indian rupee is a key factor due to which meat and its products have become more expensive by up to Dh5 a kilogramme.

The next largest contributor to the overall rise in consumer prices over the first half of 2012 was the restaurants and hotels group, which accounted for 42 per cent of the increase in the CPI as the group’s prices climbed 15 per cent. A hotelier said that there has been an increase in prices, which he linked to the rise in the cost of operations.

“There has been a huge increase in the number of hotels and restaurants in the capital far more than is required at the moment, as number of customers dinning out there has not increased substantially,” he told Khaleej Times.

The main group that slowed down the rise in consumer prices was housing, water, electricity, gas and other fuels, which offset the impact by -35 per cent to the overall change in the index, with the average prices falling by 1.1 per cent. Average consumer prices increased by 1.4 per cent year-on-year in June 2012, says Statistics Centre Abu Dhabi.

The most significant individual increase this month was in the prices of restaurants and hotels soared 22.4 per cent.

The alcoholic beverages and tobacco up 10.7 per cent and “Food and non-alcoholic beverages” 4.2 per cent.

On the other hand, the prices of the housing, water, electricity, gas and other fuels” group decreased by two percent.

As for month-over-month inflation, average consumer prices increased by 0.2 per cent in June 2012.