Soaring prices push citizens to the brink

Sources say the crisis is expected to worsen for low-income households.

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RAWALPINDI:

Households across Pakistan continue to grapple with a staggering 30-40 per cent hike in the prices of essential commodities. Despite government interventions, inflation relentlessly impacted every aspect of daily life, leaving citizens reeling.

Efforts to stabilise prices failed, with manufacturers adopting subtle tactics like reducing the quantity in packaged goods without lowering costs.

For instance, a 1-kilogramme pack of tea now weighs 900 grams, while sacks of flour and other staple goods have similarly shrunk in weight. Yet, prices remain unaffected, if not higher, exposing consumers to an ongoing squeeze.

A snapshot of last year's price escalation reveals the grim reality.

Rice, which sold for Rs280 per kilogramme in January 2024, now costs Rs380. Ghee has jumped from Rs450 to Rs550, while cooking oil climbed from Rs500 to Rs560.

Pulses like Black Lentils saw a meteoric rise from Rs350 to Rs560 per kilogramme.

Similarly, milk prices inched up from Rs200 to Rs220 per litre, and spices now cost Rs500 per kilogramme, up from Rs350 at the year's start.

Other items have followed the same trend. Ginger, garlic, bakery goods, and even roti and naan have seen price hikes that disproportionately affect consumers.

A cup of tea, which was Rs50 last December, now costs Rs80, while naan prices rose from Rs25 to Rs30.

Tandoor (oven) operators cite increased flour costs and subsidy cuts for the shrinking size of red flour bread, forcing labourers to double their purchase just to meet their basic dietary needs.

The situation has been exacerbated by spiralling fuel costs, with petrol and diesel prices directly impacting transportation and supply chain expenses.

Central Grocery Merchants Association President Saleem Pervaiz Butt attributed the inflation to a combination of rising fuel prices, government taxation, and a weakening rupee.

He warned that the trend shows no signs of abating.

Efforts like the Punjab government's "Sasta Sahulat Bazaars" have also failed to provide relief, with 16 markets and 24 subsidised cart bazaars shutting down due to mismanagement and soaring costs.

Even official price lists issued by the District Market Committee (DPC) have become unreliable, with open-market rates often exceeding them by Rs40 to Rs100.

With no immediate solutions in sight, the relentless rise in living costs paints a bleak picture for the coming year, particularly for low-income groups who bear the brunt of inflation's crushing weight.

The crisis extends beyond food. Livestock prices have surged dramatically, with buffaloes now costing Rs0.8 million to Rs1 million—a steep increase from last year's Rs0.5 million to Rs0.6 million range.

This rise is attributed to a 300 per cent hike in fodder costs, as per Chaudhry Khurram, Vice President of the Cattle Union.

Shafiq Qureshi, President of the Nanbai Association, highlighted that flour prices continue to climb monthly, predicting even higher rates in 2025. The cost of a 50-kilogram sack of flour has already risen from Rs6,900 to Rs9,000 this year alone.