Pakistan’s inflation sees 100% jump in three years

KARACHI: Pakistan’s inflation witnessed a 100 per cent increase in the three years of the present government with essential items and food prices becoming dearer for the common man. Not only prices of food items but the tariffs of all utilities have jacked up to an unaffordable ratio.

The data collected from the Pakistan Bureau of Statistics (PBS) and wholesale/retail dealers in open markets, revealed that inflation has doubled in the three years, making it difficult for the common man to survive.

Gul Durrani, a local retailer in Karachi, said: “In the past two to three years, the prices of essential commodities went to the highest level and the people are forced to buy low quality products.”

“We were selling masoor pulse at Rs80/kg in 2019, which is now selling at Rs180/kg, sugar price went up to Rs160/kg, compared with Rs55/kg in 2019, and same goes for flour, the price of which more than doubled in the last three years.”

“When we go to the market and ask for the price of commodities in bulk quantity, the suppliers give us items with increased prices along with a warning every time that the prices will be further increased next time,” he said.

Another shopkeeper in a local vicinity said: “Our sales remain the same but our profit margin declined, partly due to the high prices.”

“These days when we go to a retailer shop, they tell us that the price could increase the same day, compared with the past when it would take weeks and months for the prices to rise,” he added.

The petrol price in October 2021 rose up to 22 per cent to around Rs140/litre, compared with Rs114/litre in October 2019, while 12kg liquefied petroleum gas (LPG) cylinder is available at around Rs2,500, compared with around Rs1,500 in 2019, an increase of around 66 per cent in the last three years.

Likewise, the electricity bills witnessed a massive raise in tariffs in the name of generation cost and fuel price adjustments during the period under review.

The prices of essential commodities, including wheat increased 33 per cent; rice, 17 per cent; cooking oil, 58 per cent; sugar, 51 per cent; tea, 11 per cent; and petrol prices increased up to 32 per cent in October 2021 against the same period in 2019, the Pakistan Bureau of Statistics (PBS) data revealed.

The price of garlic in October 2021 increased 39 per cent to Rs390, compared with Rs280 in the same period of 2019, broiler chicken (live) increased 83 per cent, curd 85 per cent and mutton 1kg increased 55 per cent.

Amir, a local retailer and supplier of essential food items, said: “The end consumers are suffering the most because of inflation of essential commodities, as the retailers and suppliers pass on their cost to the consumers.”

The consumers now ask for low priced items, which usually are of low quality, resulting in a crisis-like situation for the retailers, as their profit margins went down, he said.

Pakistan is witnessing the worst food inflation in recent times. Prices of essential commodities are hiking and the whole chain of customers are equally affected by it.