Price bite

The cost of living is getting too toiling. Prices of essential commodities know no bounds and are in a fleecing zone. The government’s inability to control the price spiral has a tale of its own misgivings and unrealistic predictions, but the point is that microeconomic indicators are in a blackhole syndrome, and relentless market activity guides them to the core. Neither there is any civility concern factor, nor the iron hand of law. This has been so all the time in recent years, and to further compound the situation is the berserk international factor in the form of worst-ever oil and food inflation in the backdrop of worldwide pandemic.

The government of Shehbaz Sharif is in a fix. It had been quite critical of the previous dispensation, and rightly so in their failure to stem skyrocketing of prices. But as they say the taste of pudding is in eating, the administration is restlessly cajoling to address the root cause of inflation. It has gone out of proportion to register 13.4% in April, which were incidentally the first three weeks of the new government. The reason is obvious: undue rise in imports at an inflated cost, a battered rupee and rise in food prices internationally. But that may not be the end of the pinching list as the IMF’s demand to slash subsidies on oil and call off the relief in electricity prices will paint a devil’s scenario. The government has little to manoeuvre as it is at the receiving end to ensure that a fresh cash tranche comes its way, and the ongoing programme with the lender is revised with an icing of $2 billion.

Statistics at the moment are too hysterical. The CPI says inflation has climbed up to 12.2% and 15.1% in urban and rural areas, respectively. This is a threatening module because conventionally urban areas are at the cost pitch. The inability to control prices in far-flung areas is an indicator that demand and supply chain is broken, and the middleman’s role in our informal and undocumented economy is eating into the vitals of serenity. This is where the local administrations should look into closely, and ensure that the price-list as ordained by the government is in vogue. To do so a firm crackdown is indispensable on hoarders and black-marketers. This demands commitment and a sense of civil exigency to root out waywardness in price-tag across the country.