Inflation rises to record high of 27.26% in August

 Highest inflation since 1973-74 is hurting the low income people badly

According to the data released by Pakistan Bureau of Statistics (PBS), the inflation measured by the Consumer Price Index (CPI) shot up to record high of 27.26 per cent year-on-year in August. In August 2021, CPI inflation had clocked in at 8.4pc. The inflation in August is the highest since 1973-74.

The rising inflation is hurting the poor and low income people very badly. The government has failed to control the inflation. The highest inflation in 49 years is the biggest failure of the Shahbaz Sharif led coalition government.

According to the PBS, inflation in urban and rural areas increased to 26.24percent and 28.70percent year-on-year, respectively. On a month-on-month basis, the CPI showed an increase of 2.45percent.

The inflationary trend was driven by a double-digit increase in almost all sub-indices, especially transport, food and housing, and utilities.

Transport: 63.08percent- Perishable food items: 33.85percent. Non-perishable food items: 28.25percent. Housing and utilities: 27.57percent, Restaurants and hotels: 27.43percent, Alcoholic beverages and tobacco: 25.78percent. 

 Furnishing and household equipment maintenance: 21.86percent, Recreation and culture: 21.78percent, Miscellaneous goods and services: 19.97percent, Clothing and footwear: 17.63percent, Health: 11.89percent, Education: 9.99percent and Communication: 1.23percent.

 PBS data showed that electricity prices rose as high as 123.37% year-on-year while motor fuels increased by up to 87.34%.

Prices of food items also skyrocketed, with rates of pulse Masoor and onions rising by up to 118.64% and 96.70%, respectively, over the same month last year.

Pakistan, which was already in the grip of high inflation, witnessed catastrophic monsoon floods this season that have caused widespread destruction and sent food prices soaring, putting many staples out of the reach of the poor.

The torrential monsoon rains have also damaged vast swathes of rich agricultural land and crops. Parts of the mountainous north and breadbasket south have been cut off because roads and bridges have been washed away.

With millions of acres of farmland still under water and certain roads inaccessible, prices are expected to climb further. The prices of many vegetables including tomatoes and onions have increased many folds.  

                                                                    insight247.news