Tag: food inflation

  • Shopkeepers arrested, fined in Lahore for selling above govt-set prices

    Shopkeepers arrested, fined in Lahore for selling above govt-set prices

    The Lahore district administration has intensified its efforts against overpricing, resulting in significant fines and the arrest of two individuals.

    Under the directives of District Commissioner Lahore Syed Musa Raza, assistant commissioners carried out surprise inspections at over 1,700 locations. These inspections led to the registration of eight cases and the imposition of fines totaling Rs1.1 million for 187 violations.

    The crackdown primarily targeted shopkeepers who were selling essential food items at prices higher than the government-mandated rates. This issue has been a growing concern in Pakistan, where overcharging by vendors exacerbates the financial strain on consumers already struggling with high inflation. The situation is particularly dire for low-income earners, who find it increasingly difficult to afford basic necessities.

    Assistant Commissioner Model Town, Sahibzada Muhammad Yousaf, conducted price inspections at various tandoors and shops, imposing fines of Rs25,000 for violations. Similarly, Assistant Commissioner Shalimar, Anam Fatima, sealed a tandoor during inspections in Tajpura and Harbanspura.

    In the Band Road Saggian area, Assistant Commissioner City, Rai Babar, inspected several shops and tandoors, issuing warnings and fines to multiple owners. Assistant Commissioner Raiwind, Zainab Tahir, carried out inspections at Raiwind Mandi and Rehri Bazaar Bhatta Chowk, fining two shopkeepers on the spot following consumer complaints.

    Authorities have mandated that all stalls and shops prominently display government-issued rate lists. Strict action will be taken against those who fail to comply. Following directives from the Chief Minister of Punjab, the administration has made it clear that there will be zero tolerance for overpricing.

    In a related development, the price of table eggs in Lahore has surpassed Rs300 per dozen, reaching Rs301. Despite no significant change in demand or production costs, egg prices have steadily increased in recent weeks. Conversely, the price of broiler chicken meat has decreased by Rs18 per kilogramme, settling at Rs577 per kilogramme after a brief downward trend.

    Weekly inflation eases slightly, but challenges remain

    Short-term inflation in Pakistan eased slightly by 0.10 per cent to a 27-month low of 16.69 per cent for the week ending August 22, 2024, compared to the same period last year. According to data from the Pakistan Bureau of Statistics (PBS), the decline was primarily driven by lower prices of tomatoes, which fell by 21.96 per cent, and wheat flour, which dropped by 2.77 per cent.

    However, the prices of several essential items, including eggs (up 6.10 per cent), pulse gramme (up 6.05 per cent), and potatoes (up 2.41 per cent), continued to rise. The PBS data showed that out of 51 tracked items, 21 experienced price increases, nine saw decreases, and 21 remained stable during the week.

    On a year-on-year basis, inflation was up by 16.69 per cent, with significant increases in the prices of gas charges (up 570 per cent), onions (up 79.51 per cent), and pulse gramme (up 51.34 per cent). Despite some declines in the prices of wheat flour, electricity charges, and certain cooking oils, the overall inflationary trend remains a significant concern for consumers.

    As the government continues its crackdown on overpricing, the broader challenge of managing inflation and ensuring affordability for essential goods remains critical for the well-being of Pakistan’s population.

  • Pakistan’s inflation eases slightly to 28.3% in January 2024

    Pakistan’s inflation eases slightly to 28.3% in January 2024

    The Pakistan Bureau of Statistics (PBS) reported that the country’s headline inflation for January stood at 28.3 per cent on a year-on-year basis, marking a slight decrease from the December figure of 29.7 per cent. The month-on-month reading recorded a 1.8 per cent increase.

    This latest data brings the average inflation for the period of July to January to 28.73 per cent, up from 25.40 per cent in the corresponding period of the previous year. Despite this surge, the inflation rate aligns with the government’s expectations.

    The Ministry of Finance, in its ‘Monthly Economic Update and Outlook’ report released on Wednesday, projected a CPI-based inflation rate of 27.5-28.5 per cent for January 2024. The report attributed the inflationary pressure to elevated prices of perishables and vegetables, along with increased utility costs for electricity and gas.

    A contributing factor to the rising prices has been a surge in onion export orders following the Indian ban, straining local supply and causing domestic prices to escalate.

    Severe weather disruptions led to supply shortages of tomatoes, resulting in price hikes, while reduced chicken supply, especially from controlled sheds facing higher input costs, contributed to increased chicken prices.

    JS Global, in a report from last week, anticipated that inflation would remain elevated, particularly in the food segment. The report predicted a 1.8 per cent month-on-month uptick in food prices, resulting in an overall January 2024 YoY CPI estimate of 27.9 per cent.

    The brokerage house noted that the CPI inflation in the coming months is expected to remain on the lower side amid the decline in local fuel prices and the high base effect of last year.

    Breaking down the inflation figures, urban areas recorded a year-on-year CPI inflation of 30.2 per cent in January 2024, slightly lower than the previous month’s 30.9 per cent and higher than January 2023’s 24.4 per cent. On a month-on-month basis, urban inflation increased by 1.8 per cent in January 2024.

    In rural areas, year-on-year CPI inflation for January 2024 was 25.7 per cent, down from the previous month’s 27.9 per cent but higher than January 2023’s 32.3 per cent. On a month-on-month basis, rural inflation increased by 1.9 per cent in January 2024.

    The PBS data indicates a nuanced inflationary landscape in Pakistan, with both urban and rural areas experiencing fluctuations in prices across various commodities. The government’s focus on addressing these challenges remains critical as it navigates the economic impact of inflation on citizens and businesses.

  • Sharp rise in petrol price drives weekly inflation up, worsening daily struggles for Pakistanis

    Sharp rise in petrol price drives weekly inflation up, worsening daily struggles for Pakistanis

    The Sensitive Price Index (SPI) in Pakistan has risen by 1.30 per cent compared to the previous week, intensifying the financial burden on the already struggling population. The nation is grappling with ever-depreciating financial resources as it faces a sharp increase in petroleum prices and food inflation.

    One of the major contributors to the rising costs is the persistent increase in petroleum and oil prices over the past year-and-a-half. This increase directly affects commuters who have to bear the brunt of higher transportation costs, making it more challenging for them to manage their daily expenses, particularly when it comes to purchasing essential goods like food items.

    Although the SPI has seen a significant decline since reaching its highest level of 48.35 per cent on May 4, the overall inflation remains a concern. The International Monetary Fund (IMF) predicts the Consumer Price Index (CPI) for the current fiscal year to be 25.9 per cent, which is still high despite being lower than the 29.6 per cent recorded in 2022-23.

    According to the latest data released by the Pakistan Bureau of Statistics, the SPI has witnessed a staggering 29.83 per cent jump compared to the same week last year. This increase followed the government’s decision to hike petrol and high-speed diesel prices by Rs19.95 and Rs19.90 per litre, as well as a substantial increase in the rate of liquefied petroleum gas (LPG).

    The outgoing government, whose constitutional term is about to expire on Aug 12, defended the decision to increase fuel prices, citing the recently reached $3 billion IMF deal as being in the national interest.

    The SPI, which covers 51 essential items, has seen prices of 23 items go up, 7 items go down, and 21 items remaining unchanged compared to the previous week. The largest week-on-week rise was observed in the prices of tomatoes, increasing by 16.85 per cent, followed by chillies powder (7.58 per cent), garlic (5.71 per cent), onions (5.50 per cent), powdered milk (5.17 per cent), eggs (3.86 per cent), and rice basmati broken (2.06 per cent).

    Looking at the year-on-year comparison, the prices of wheat flour have surged by a staggering 131.40 per cent, while rice basmati broken and rice Irri-6/9 have increased by 82.86 per cent and 72.73 per cent, respectively. This is alarming as wheat flour and rice are staple foods for the majority of the population, and such steep price hikes can exacerbate the existing nutritional deficiencies and lack of protein in the daily diet.

    Adding to the concern is the rising cost of pulses, lentils, chicken, eggs, potatoes, and other vegetables, which are crucial components of the daily diet. This trend points towards a looming food insecurity crisis in Pakistan.

    The situation is expected to worsen as Pakistan must implement the harsh IMF conditions, which revolve around higher prices of utilities and fuel. This will make it even more challenging for the inflation-hit people to sustain the required food intake, leading to further hardship for the already struggling population.