UAE firms hike prices at fastest rate since 2011 as Gulf tensions spike costs
UAE businesses increased selling prices at the fastest rate in nearly 15 years in April due to supply disruptions and rising energy costs linked to escalating Gulf tensions. The surge in prices reflects mounting cost pressures on companies grappling with constrained supply chains and a sharp drop in export demand.
UAE businesses sharply increased selling prices in April at the fastest rate in nearly 15 years, according to S&P Global survey data. The surge in prices reflects mounting cost pressures on companies due to constrained supply chains, higher transport costs, and a sharp drop in export demand amid disruptions in the Strait of Hormuz. The S&P Global UAE Purchasing Managers’ Index (PMI) slipped to 52.1 in April from 52.9 in March, marking the weakest expansion in operating conditions since early 2021. Businesses have responded to higher oil prices and escalating freight and logistics expenses by passing these costs on to customers at an accelerated pace. Export orders were particularly hard hit, with a sharp contraction in new export business due to shipping disruptions and heightened security risks. The rise in selling prices comes even as new business growth slowed to its weakest pace in more than five years.
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