PESHAWAR:
Yet another increase in the prices of petroleum prices is poised to cause surge in inflation across the board which will hit the middle class hard in the coming days.
The announcement of new petroleum product prices has already prompted autonomous hikes by shopkeepers across a spectrum of products.
Meanwhile, transporters also raised fares indiscriminately on various routes, sidestepping the requisite approval process from the transport department.
Economic indicators paint a grim picture. The annual inflation rate catapulted to 35.4% in March, an alarming level not witnessed in nearly five decades.
This escalation in inflationary pressures has precipitated a host of distressing consequences, from increased incidents of street crimes to unsettling stampedes as desperate individuals clamor for sustenance.
The Consumer Price Index’s staggering ascent to 35.4% underscores the relentless strain on households. While this rate falls slightly below the 37.8% peak recorded in December 1973, it underscores the path towards hyperinflation.
Rural areas are grappling with a staggering food inflation rate exceeding 50%, emblematic of the acute economic distress endured by the most vulnerable segments.
Alarming inflation figures manifest across diverse consumer price categories, with six groups reporting rates surpassing 40%. Notably, alcoholic beverages and tobacco hit an unprecedented high, registering an inflation rate of 140%.
The confluence of factors driving this inflationary spiral is multifaceted, stemming from a myriad of issues such as commodity scarcity post-floods, unbridled hoarding, currency depreciation, amplified tax rates, and the mounting financial toll from escalated fuel prices, electricity tariffs, and gas rates—measures taken to fulfill obligations under the aegis of the International Monetary Fund.
The toll of these conditions has been starkly illustrated by the tragic deaths of approximately 21 individuals, including children, in their pursuit of sustenance. This heartrending manifestation of deprivation underscores the depths of desperation pervading communities, where individuals are risking their lives to secure a basic necessity like food.
In tandem, the surge in street crimes underscores the escalating ramifications of inflation, as robbers brazenly perpetrate thefts, snatching mobile devices and looting stores in localities once deemed secure, thereby challenging the very essence of state authority.
Virtually every consumable commodity has borne the brunt of inflation’s wrath in recent months, reflecting a widespread erosion of purchasing power. The release of these alarming statistics by the Pakistan Bureau of Statistics precedes a crucial Monetary Policy Committee meeting.
However, the elevation of interest rates alone cannot address the multifaceted factors fueling inflation’s surge. The Finance Ministry’s recent economic outlook avowed the ineffectiveness of contractionary monetary policies in taming inflation.
Published in The Express Tribune, August 17th, 2023.
Source link: https://tribune.com.pk/story/2431036/transporters-hike-fares-unilaterally