Inflation unleashed

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Inflation and price hikes have affected every aspect of life in Pakistan but some sectors have felt the pinch much more than others. According to media reports, the inflation rate in Pakistan has reached almost 30 percent for certain products. Wheat, sugar, tea, eggs, poultry, dry milk, important medicines and electricity are amongst the most affected items.

Price of 20 kg flour bag has reached Rs 530 which was Rs 300 in May 2008. Price of one kg sugar has reached Rs 51 which was Rs 25 last year during the year 2008. Cereals and vegetable rates have increased significantly.

Price of one kg poultry has reached Rs 200 which was Rs 120 during the year 2008. Price of one dozen eggs has reached Rs 60 which was Rs 35 during the year 2008.

Obviously, much of this inflationary pressure is due to the recession and the fact that the economy is in tatters is also a contributing factor. But the worrisome aspect is that the inflationary trend is in items of basic use which, disproportionately affects the lower classes and the lower middle classes more.

The government needs to revise its policies such as minting money and excessive borrowing which are contributing to this inflation. If they do not review their decisions soon, it might be very difficult to put this genie back in the bottle.

ABUBAKAR MOAZZAM

Lahore

 

1 COMMENT

  1. Where are you, please correct your analysis

    20 kg flour bag has reached Rs 660/- not 530
    one kg poultry has reached Rs 280 not 200
    one dozen eggs has reached Rs 116 not 65

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