Inflation on fast-moving consumer goods sold online has plateaued in Q1 2023, according to UAE’s Ecommerce Consumer Price Index for the first quarter of 2023 by global e-commerce accelerator Pattern.
The study shows that while higher costs have become commonplace in the Middle East, there remain many products that have decreased or maintained figures close to their rates in Q1 of 2022.
Pattern’s general manager for the Mena region, David Quaife, said it had been a “turbulent time” for businesses and attributed the rises to supply chain disruptions “coupled with increased costs of materials, labour and shipping”.
The report looked at the data and price indices of several products ranging from flour, tea and rice to personal care products and household detergents and soaps.
Key findings include:
Food & beverage
Tea has seen the most staggering rise, up 26 per cent over the last year. Coffee prices, however, have been increasing more moderately – up four per cent over the same period. e
While the price of flour went up by 16 per cent over the past year, the price only increased by two per cent over the last three months. Similarly, the price of milk only increased by three per cent during the past quarter, while rice price hasn’t changed at all during the same period—despite milk and rice being up in price by four and three per cent respectively since 2022.
Personal care
The price of personal care products in the UAE skyrocketed compared to last year—with the cost of lotion, deodorant, and soap increasing by 22 per cent, 19 per cent, and 10 per cent, respectively. Yet, the price increases of some products, such as lotion and deodorant, have slowed down during the past quarter. In effect, the price of soap is beginning to drop, down by seven per cent over the past three months.
Household products
Household items such as laundry detergent, tissues and dish soap are up 18 per cent, 11 per cent and 12 per cent respectively over the past year. However, the price of washing-up liquid has levelled off over the past quarter, up only one per cent during the past three months.
Mr Quaife, said: “Similarly, consumers continue to experience pain at the point of purchase as they navigate the increased price of many goods. It is our hope that this quarterly index will shed light on these shifts to better inform brands and consumers alike on where the average prices of some of the most commonly purchased products in the market are headed.”
On balance, the trend of decelerating is expected to continue in the UAE in the second quarter of 2023 and may offer some relief for online consumers in the nation.
