Outgoing year leaves behind legacy of unparalleled inflation

Prices skyrocket while citizens’ purchasing power substantially declines

RAWALPINDI:

The year 2022 proved to be extremely disastrous for the common man in terms of declining purchasing power and skyrocketing prices of grains, vegetables, fruits and medicines.

The country saw the worst inflation in recent years under which prices of almost all essential commodities increased manifolds, including in Bachat Bazaars set up on Sundays, Fridays and Tuesdays.

In addition, many renowned national and multinational companies operating in Pakistan have reduced the weight of items in packaging, citing inflation and rising production costs.

Since May 1, a 200 to 500 per cent increase in the prices of all items has been recorded, with alarms of further inflation from the start of the next year.

In the current year's budget 2022-23, the minimum wage was fixed at Rs25000, but the authorities failed to implement the minimum wage in many sectors and industries. Even today, daily wages and contract employees are being paid Rs15,000 to Rs22,000 in public and private institutions.

The decrease in the supply and quality of goods also compounded the inflationary pressure, while the devastating floods that came in the middle of this year also adversely affected the supplies and prices of everyday goods and services.

The failed economic policies of the government and the stark increase in foreign loans and circular debt also played a role in rising inflation.

According to the market survey, regular roti was sold for Rs8 per piece, khameri roti was available for Rs15 and naan was priced at Rs15 till April 30. However, since May 1, these prices have been increased thrice, with roti selling at Rs20, khameri roti at Rs25 and naan at Rs30, while paratha is being sold for Rs50 per piece.

Market sources fear a rise of about 50 to 100 per cent in the prices of all the essential commodities such as vegetables, fruits, meat, milk, bread, flour, wheat, rice, pulses, ghee, chicken and eggs from January next year.

 

Published in The Express Tribune, December 18^th, 2022.