‘No one is thinking about Covid’: consumers concerned by high prices ahead of Ramadan 2022



For millions of Muslims around the globe, Ramadan has been upended for two years running by the Covid-19 pandemic.

But this year, amid regional conflicts and price rises, people across the Middle East say they have bigger concerns.

“This Ramadan, no one’s thinking about Covid,” construction worker Ahmed El Gizawy told The National in Cairo. "What is on everyone’s minds are the rising prices nationwide. Even bread is expensive now. Many people, me included, are really struggling under this strain."

In Baghdad, Iraq, Ahmed Ali, a government employee, emerged from a hypermarket carrying one small plastic bag.

“All prices are up and we are just weeks ahead of Ramadan,” the government employee said.

War in Ukraine and currency crunches send prices skywards

The war in Ukraine has sparked a rise in prices of basic goods, particularly those made with wheat or oil.

The price of bread in Egypt has increased by up to 50 per cent in light of the Russia-Ukraine war. This Ramadan, the largest loaves will cost about 1.5 Egyptian pounds, up from 1 pound last year.

“Many Egyptians, particularly the lower classes, forgot about Covid-19 long ago. I think they began treating it like it was the will of God and they continued with their lives. It was only a big problem for people during the lockdown, when they couldn’t work or feed their families.”

Mr El Gizawy said that rising fuel prices had delayed a lot of construction projects. He was been at home, waiting for the construction site where he works to start back up again, with colleagues constantly calling him in fear of losing their jobs.

In Jordan, 14 litres of cooking oil has soared in from $24 to $32 in the past month. A 10-kilogram bag of rice rose in price by $3, to $15.

Lina, a Jordanian mother of two, said her extended family had been buying extra rice, meat, sugar and oil, and stocking up on gas cylinders for cooking.

We have felt the pinch and I can estimate the impact on my budget at about 30 per cent, and that will be reflected in what I’m going to buy
Ahmed Ali,
Iraq

“This is the first Ramadan since Covid where families can eat together, so people are buying more,” she said.

The recent currency devaluation due to significant decline in oil revenue pushed Iraq into a budget deficit by the end of 2020. This combined with the war in Ukraine, has forced the price of some food items up by as much as 50 per cent.

“The soaring in prices has badly hit those with limited income and the middle-class, while the well-off people don’t feel it,” Ahmed Ali, 30, said.

Since late 2020, anger has mounted among the public since the Iraqi dinar fell by about 23 per cent against the dollar. Iraq imports most of its items, food and otherwise.

“We have felt the pinch,” Mr Ali said. “I can estimate the impact on my budget at about 30 per cent and that will be reflected in what I’m going to buy.”

Lebanon braces for the worst Ramadan in decades

Few nations in the region are in as much trouble as Lebanon. It is suffering from the problems affecting other nations, plus the impact of years of economic meltdown.

In Ramadan 2021, the average cumulative monthly cost of iftar for a family of five was two and a half times the country’s monthly minimum wage, the American University of Beirut’s Crisis Observatory Unit found.

”The most basic dishes that we can prepare for Ramadan this year will be crazy-expensive,” said Sawsan Ramadan, an office manager.

“Even hosting or attending gatherings this month will be a financial burden on many.”

Almost 80 per cent of Lebanon’s population lives in poverty, according to the UN. The Lebanese lira has lost more than 90 per cent of its value since October 2019, leaving essentials unaffordable to many.

A raging storm amid electricity shortages are making it difficult for families to keep warm, and exorbitant fuel prices have made transport a luxury.

“If we talk about food and iftar preparations, this year it is very costly and unaffordable. Hosting is not even a thought, because I personally cannot think of having festive season for Ramadan while people are dying of hunger,” Aida Fakhoury, a clinical quality specialist, told The National.

Governments act to reassure citizens

FILE PHOTO: A worker stands near freshly baked bread at a bakery in Beirut, Lebanon March 8, 2022. REUTERS / Mohamed Azakir / File Photo
FILE PHOTO: A worker stands near freshly baked bread at a bakery in Beirut, Lebanon March 8, 2022. REUTERS / Mohamed Azakir / File Photo

Jordanian officials have offered reassurance that the country is well stocked for basic goods, despite high unemployment and a stagnant economy.

A Syrian owner of a large restaurant in Amman with a middle-class clientele said he did not expect much improvement in business this Ramadan, because the past nine months had been slow despite the easing of coronavirus restrictions.

“The economy is in the doldrums and people in general are not spending except on basic goods,” he said.

The Iraqi government has suspended customs duties on food products, basic consumer goods and construction materials for two months. It has said it will pay civil servants and pensioners whose income does not exceed one million dinars (almost $700) a monthly allowance of about $70.

Last week, the Iraqi Trade Ministry said it was in the process of distributing seven-item Ramadan food baskets as part of its subsidy programme. Each hamper contains rice, sugar, cooking oil, tomato paste, beans, lentils and chickpeas. They will be handed out three times over the course of the holy month.

Egypt this week announced a multibillion-pound relief package including tax breaks, wage rises and pensions, as well as a widened state support programme for poor families. The government has also created a special fund of 130 billion Egyptian pounds to mitigate the effects of the Ukraine war on the Egyptian economy.

Covid-19 almost forgotten

Antique shop salesman Omar Ibrahim, 37, doesn’t feel there is any worry over Covid-19 or that any expected restrictions will hamper Ramadan traditions in the Egyptian capital, Cairo.

After peaking in early February with a record 2,301 infections, Egypt’s daily coronavirus cases have been on the decline. The country’s health ministry recently announced its Covid-19 updates would be reduced in frequency from daily to weekly.

“For me this year, Ramadan feels a little different. It’s right around the corner, but there isn’t the usual excitement, because everyone’s attention is on Russia’s war with Ukraine and how it’s making prices here skyrocket “ Mr Ibrahim said.

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Corinne Laframboise (CAN) beat Cornelia Holm (SWE) by unanimous decision.

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Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.

“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

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“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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What went into the film

25 visual effects (VFX) studios

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  • 2018: Formal work begins
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  • November 2022: Additional 19 volumes released
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Microsoft’s ‘hacker-in-chief’ David Weston, creator of the tech company’s Windows Red Team, advises simple steps to help people avoid falling victim to cyber fraud:

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3. Multi-factor authentication is required. Move away from passwords as fast as possible, particularly for anything financial. Cybercriminals are targeting money through compromising the users’ identity – his username and password. So, get on the next level of security using fingertips or facial recognition.

4. Move your personal as well as professional data to the cloud, which has advanced threat detection mechanisms and analytics to spot any attempt. Even if you are hit by some ransomware, the chances of restoring the stolen data are higher because everything is backed up.

5. Make the right hardware selection and always refresh it. We are in a time where a number of security improvement processes are reliant on new processors and chip sets that come with embedded security features. Buy a new personal computer with a trusted computing module that has fingerprint or biometric cameras as additional measures of protection.

Auron Mein Kahan Dum Tha

Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar

Director: Neeraj Pandey

Rating: 2.5/5

Result

Crystal Palace 0 Manchester City 2

Man City: Jesus (39), David Silva (41)

Updated: March 23, 2022, 8:40 AM`