UAE’s Ecommerce Consumer Price Index for Q1 2023 shows a slowdown in FMCG price increase
Pattern’s UAE’s Ecommerce Consumer Price Index (ECPI) for Q1 2023 shows that the prices of a typical basket of consumer goods increased at a much slower rate in comparison to other markets. Global inflation has proven to be one of the most pressing challenges for businesses and consumers alike since the beginning of the pandemic. Increasing costs have been commonplace in both Europe and North America, and the Middle East has been no exception. However, while some product prices have been on the rise, there are many products that have decreased or maintained figures close to their rates in Q1 of 2022.
The report looked at the data and price indices of a number of products ranging from flour, tea, and rice to personal care products and household detergents and soaps. The data science team at Pattern used this data set to build Pattern’s UAE ECPI by analysing daily pricing data since the beginning of 2022 for the most common purchases on a regular basis by households in the UAE.
Pattern’s MENA General Manager, David Quaife, explained, “Supply chain disruptions, coupled with increased costs of materials, labour, shipping, and more have made it increasingly difficult for brands to navigate pricing strategy without a real-time window into the competitive landscape. 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.”
Food and beverage
Tea has seen the most significant rise, up 26 percent over the last year. Conversely, the increase in the price of coffee has been more moderate, up 4 percent over the same period. While the price of flour is up 16 percent over the past year, the price only increased 2 percent over the last three months.
Similarly, the price of milk only increased 3 percent during the past quarter, while rice hasn’t increased in price at all during the same period—despite milk and rice being up in price 4 percent and 3 percent since 2022.
The price of personal care products in the UAE have risen compared to 2022—with the cost of lotion, deodorant, and soap increasing by 22, 19, and 10 percent, respectively. Still, the price increases of some products, such as lotion and deodorant, have slowed over the past quarter. In fact, the price of soap is beginning to drop, down by -7 percent over the past three months.
Household consumables such as laundry detergent, tissues, and dish soap are up 18, 11, and 12 percent, respectively, over the past year. However, the price of washing up liquid has levelled off over the past quarter, up only 1 percent during the past three months.
While inflation has driven up the cost of most products across the global consumer landscape, the rate of inflation is decelerating in the UAE for many of the fast-moving consumer goods sold online. The trend is expected to continue in the second quarter of 2023 and may offer some relief for online consumers in the nation.
The data powering Pattern’s ecommerce acceleration platform leverages 27 trillion historical data points including pricing data for over 300 million products across thousands of sites online.