Inflation ‘drops’ on paper, as public faces soaring prices in reality

By Khalid Iqbal
September 09, 2024
A woman checks the smell of rice at a market. — AFP/File

Rawalpindi:Despite government claims through the Federal Bureau of Statistics (FBS) that inflation has dropped from 38 per cent to 11 per cent, the public remains unconvinced. Prices of essential commodities, especially pulses, continue to rise sharply. Rates for various pulses have jumped by Rs40 to Rs80 per kilogram, eggs have increased by Rs33 per dozen, and milk has surged by Rs20 per kilogram. Even packed milk has shot up by Rs90 per litre, while chicken meat prices soar daily.

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Citizens are questioning how inflation could have dropped when the cost of essential goods continues to climb. The government’s much-touted relief appears to be limited to a reduction in 'atta' (flour) prices from Rs2600 to Rs1800 per 20-kilogram bag, now selling between Rs1750 and Rs1800. However, all other essential items remain at inflated rates, leaving the public skeptical of the inflation figures.

Residents of Rawalpindi and Islamabad voiced their frustration, accusing both the federal and Punjab governments of relying on fake and misleading price indexes to paint a rosy picture. In reality, they claim, the government has utterly failed to provide meaningful relief to the public across all sectors.

The price of ‘basin’ (gram flour) has increased by Rs77 per kilogram, now selling at Rs357, up from Rs280 in wholesale markets. Even Prime Minister Shehbaz Sharif and Chief Minister Punjab Maryam Nawaz assured the public that inflation had dropped, yet prices for both edible and non-edible items continue to rise, leading people to wonder how inflation is supposedly down from 38 per cent to 11 per cent. The scepticism is shared by wholesale dealers and retail shopkeepers alike.

Muhammad Usman, Sher Zaman, Mansoor Khan, Abdul Hadi, Zhaeed Baloch, and Muhammad Owais, among others, told The News that prices of all goods have increased by 5% to 15%, contrary to government claims. They accused the federal government of presenting false statistics and attempting to force the public to accept an unrealistic price index from the FBS.

A survey conducted by The News revealed that all types of pulses have increased significantly in price. Daal Chana is now selling at Rs380, up from Rs300 per kilogram; Daal Masoor at Rs340, up from Rs280; Red Lobiya (kidney bean) at Rs620, up from Rs560; and Daal Mash is priced at Rs520, up from Rs480 in wholesale markets—prices that are even higher in retail stores.

Pulses Wholesale Dealers Association (PWDA) President Haji Fazal admitted that prices of all pulses have increased dramatically, causing hardship for the public. The cost of dry milk for children has risen from Rs850 to Rs980, olive oil (150 grams) from Rs240 to Rs550, and eggs from Rs270 to Rs303 per dozen. Even rates of daily essentials like washroom cleaners have jumped from Rs250 to Rs280. Multi-national companies have also reduced the quantity of products, with a 900-gram tea pack now selling at Rs2250, up from Rs1750 for a 1000-gram pack. Packed milk is now selling at Rs360, compared to Rs280.

In the vegetable market, potatoes are selling for Rs100-110 per kilogram, onions for Rs170, ginger for Rs1000, garlic for Rs600, and lemons at Rs1000 per kilogram. Dairy prices have also surged, with milk now priced at Rs220-250 per litre, and yogurt at Rs250.

Meat prices continue to rise, with butchers selling mutton at Rs2250 per kilogram and beef at Rs1300—well above the official rates of Rs1600 and Rs800 per kilogram, respectively. Chicken meat is being sold at an inflated price of Rs710 to Rs720 per kilogram.

The construction industry has also been hit, with prices for building materials rising so steeply that many construction projects have been halted for months. Citizens are left asking: where exactly has the government succeeded in lowering prices? If no essential items have seen price reductions, how has inflation supposedly dropped from 38 per cent to 11 per cent?

A senior government officer, speaking anonymously, acknowledged that the current administration is relying on "fake and baseless" paperwork and surveys to claim success. "We cannot control inflation in this country; all government officers have raised their hands in defeat," he admitted.

Commissioner Rawalpindi Division Engineer Aamir Khattak stated that he has directed all government officers to focus on providing genuine relief to the public. He emphasized that practical performance must replace the “ghost” performance often touted by officials. "I will not spare lazy or corrupt officers at any cost," he warned.

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