The problem of inflation is not unique to the UAE. It is a global phenomenon that has consequential effects upon industry and individuals alike, from the richest to the poorest.
Inflation permeates every aspect of our lives as basic raw materials, manufacturing costs and incomes are adjusted to take account of increases in prices and/or reductions in supply.
Inevitably, it is the man in the street who suffers most as he tries to earn his salary, often not adjusted for inflation, and meet the daily and monthly expenditures.
The present inflationary spiral has been in existence for awhile now and is likely to stay around for some time. Its falling domino-like effect will drift across the globe and may take several years to settle, ultimately and most likely, to a much higher level of prices than now experienced.
Many countries have a history of their economies going through periods of inflation, stagnation and even "stagflation" - a situation which is somewhere between the two.
Although the UAE has experienced inflation and moderate recession before, the present inflation period has never been so prolonged.
It is for this reason the UAE government is now determining ways to peg prices for the benefit of the economy in general and consumers in particular.
Yet with retailers acceding to requests to hold prices to last year's level it will mainly bring about loss of profit to those retailers, maybe even driving them out of business.
Especially if there are dramatic increases in prices of raw materials, as is anticipated later this year, thereby creating a public perception that nothing has changed for the better. So it will not solve the problem, merely delay its resolution.
Sadly, what the government is doing is like plugging a hole in a dam with a finger.
