The inflation rate in Pakistan rose to 11.4% in September 2019 versus 10.49% in October.
Average inflation stand at 10.08% compared to 6.1% the previous year.
The International Monetary Fund estimated that Pakistan’s inflation may escalate up to 13%.
Items with major price hike
The gas prices saw a surge of 114.64%. 108.7% increase in prices of onion, 79.4% in chicken, 46.8% in moong pulse, 38% in cigarettes, 37% in sugar, 36.2% in potato, 22% in petrol, cooking oil prices increased by 20.3%, tea prices by 16.4%, doctors’ fee 15.8%, masoor pulse 13.4%, meat 12.7%, wheat flour 12.3% and transport services 11.5%.
The Pakistan Tehreek-e-Insaf (PTI) government also approved a further increase in electricity tariff by 83 paisa on 2nd October. This is for consumers using more than 300 units a month.
So, why inflation rate continues to increase?
The main reason is the increase in energy prices which impacts the prices of a large number of items.
The increase in sales tax and monopoly of a few businesses is also having a serious impact on prices of daily use items.
Further, supply shock is also impacting the prices. In simple terms, supply shock is sudden increase or decreases in the product/service supply.
Who has to bear the burden?
Inflation destroys the purchasing power of the currency. So, middle, lower middle and lower class have to bear majority of the brunt as they hold much of their assets in cash. On the other hand, rich have the means to evade it as they have assets such as land, gold (whose value increases).
What do you have to say about the rising inflation rate in Pakistan? Let us know in the comments below.