Cost of living fears crop up in the UAE - Khaleej Times

There is no denying the fact that the cost of living in the UAE, and particularly in this booming city that is progressing at a frenetic pace, has steadily increased over the years. One firm has already hiked its water charges and others could follow suit. Rents have more than tripled in the last 10 years, transportation costs have shot up, school and college fees have followed, luxury goods and prices at restaurants too have jumped and unless a close watch is kept, we are at risk of facing a runaway inflation. Shaikha Lubna Al Qasimi, the Minister of Economy and Planning, has warned firms not jack up the prices of commodities and one can only hope that they will take her warning seriously.

One can only hope she is only bluffing. Ignoring market forces is like ignoring the law of gravity. It doesn't help, it only hurts. People get hurt. I thought the Khaleej Times was more cognizant of economics than they are displaying here. Perhaps the Raj experience has biased the editorial writer's view of the world.

See my post here on the social merit of price gouging.