Inflation, ahead of the Holy month of fasting in Pakistan, is always expected and always feared. There is no official and effective check and balance on prices in Pakistan which is why the high demand in Ramadan drives up prices so much. However, this time around, inflation, globally, has reached new heights and we’re wondering whether Pakistan is better off or not.
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Inflation in Pakistan
Last year, Pakistan’s CPI (consumer price inflation) increased 11.1% before Ramadan which previously stood at more than 9 a month before. The month of fasting brings a greater demand to suppliers which is why retailers of fruit, vegetables, meat, and even other groceries tend to rise too much.
This is also true for big grocery brands that initiate a price hike before Ramadan in the name of “inflation”. However, this price hike is also attributed to people hoarding items before Ramadan which creates a shortage and hence, higher prices.
Egypt’s Crisis
Currently, Egypt is going through a crisis that their President has termed an even more serious crisis than coronavirus. Egypt is the larger importer of wheat and Russia and Ukraine account for 30% of the world wheat supply. In the face of the current war that is going on, both countries have put a hold on their exports for domestic consumption.
As a result, Egypt has had to put aside several billion in order to subsidize food. The Egyptians eat wheat (roti) with everything and hence, higher prices for that will result in a rallying cry. Moreover, Food and Agricultural Organisation have said that the global food prices are at their highest since 1974 when adjusted for inflation.
Indonesia Is In The Same Boat
These crises are traveling far and wide. Indonesia is also facing the highest inflation rate in two years and this is expected to be further aggravated in Ramadan. The country has so far imposed a higher price on their gasoline which has also destabilized the country’s prices.
This shows that countries around the world are facing aggravated inflation due to circumstances. However, Pakistan is facing it simply because the people can. The stall vendors mostly turn towards price their products as they wish. We seldom have more options than to purchase!
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