Inflation affects different sectors of the economy. When inflation crosses reasonable limits, it has negative effects. The increasing uncertainty discourages saving and investment. Not only can high inflation erode the gains from growth, it also makes the poor worse off and widens the gap between the rich and the poor. If much of the inflation comes from increase in food prices, it hurts the poor more since over half of the family budget of low wage earners goes into food. Second, it redistributes income from fixed income earners (for instance, pensioners) to owners of assets and earners of large and variable income, such as profits.
For Pakistan’s economy, inflation can be bad if it crosses the threshold of six percent, and can be extremely harmful if it crosses the double-digit level. Several supply and demand factors could be responsible for this surge in inflation.
Alma Zehra
Karachi
I am compelled to voice my deep concern about the looming threat to the Indus Waters Treaty, a landmark agreement...
In our country Pakistan, many people use the cheapest and most unhealthy oils in their homes, hotels and restaurants....
Despite growing awareness globally, many in our country still view seeking therapy as a sign of weakness or something...
This Tuesday , a tragic militant attack in the scenic Baisaran Valley near Pahalgam in Indian Occupied Jammu and...
Pakistan has experienced various extreme weather events as a result of climate change. Over the past 20 years, flash...
This letter refers to the news report ‘Asia King bull becomes centre of attraction at cattle market’ . Every year,...
