LAHORE    -   The Pakistan Industrial and Traders Association Front (PIAF) has urged the government to take concrete measures for easing out inflation that increased to over 9% in September from 8.2% in August. 

PIAF Chairman Mian Nauman Kabir, in a joint statement along with senior vice chairman Nasir Hameed and vice chairman Javed Iqbal, said that inflation is on higher side due to the impact of government’s economic policies of soaring fuel rates, enhancing power and gas tariff, depreciating the local currency and imposing exorbitant duties on imported industry raw material.

It is to be noted that the PBS calculates the inflation rate by measuring the prices of a basket of 480 common goods and services, such as the cost of education, house rent, utility bills and food and beverages. An increase in the inflation rate means the prices of goods and services have increased.

According to reports, higher food item prices such as tomatoes, wheat and potatoes pushed the inflation up during September this year, said senior research analyst Karim Punjani. The rural inflation has been higher in September as compared to urban. It is because the rural inflation depends more on food items. The rural inflation increased by 11.1% as compared to urban inflation of 7.7%. Inflation generally increases due to demand. But the monsoon damaged crops and also disrupted logistics, which pushed the prices up for essential goods. Moreover, wheat and sugar prices also went up.

He said that increasing policy or interest rates is the most important tool for a country’s central bank to leash inflation. Higher interest rates help curtail spending by people and companies. It in turn reduces demand, which tends to bring down prices. There’s growth in the economy but it has not happened across the board, as some sectors have shown growth but not all.