Vijay Valecha, Special to Arabian Business April 22, 2022
“Inflation is rising across the globe, and it is not a GCC-specific phenomenon. In particular, US Consumer Price Index rose 8.5 percent year-over-year in March, the most significant jump since December 1981 and an acceleration from February’s 7.9 percent rate,” he said.
Rising fuel prices have impacted Dubai’s airlines but both Emirates and flydubai said they are taking measures to control ticket prices as much as possible.
“Emirates, like other airlines, has been impacted by the increase in fuel prices. We are watching developments on the price of fuel closely, and are working hard to offset escalating jet fuel costs wherever possible,” said an Emirates spokesperson.
“We continually review ticket prices, and adjust whenever necessary in line with market dynamics, the competitive environment, seasonal effects and travel demand recovery, consumer booking behaviour, jet fuel prices, along with a number of other factors,” continued the spokesperson.
Inflation within the GCC context
“Minutes of the Federal Reserve’s latest meeting showed that a half percent rate increase is possible in the next meeting. The report also indicated that it could reduce its bond holdings by about $95bn a month. Lower demand for bonds signifies lower bond prices and thus more high yields, which will also be reflected in the Arab world,” he said.
“It doesn’t look like the geopolitical tensions will subside soon. So increased prices are here to stay, and high energy costs aggravate this scenario-supply-side bottlenecks in semiconductor chips have affected products ranging from mobile phones to automobiles. The blockages in the supply chain might continue for at least one more year as substantial capital investments are needed to expand the production capacity,” he said.Source: