Inflation further squeezes poor

ISLAMABAD - Inflation for the extremely poor has increased to a historical level of above 33 per cent, which is the new highest mark in less than ten days. Federal Bureau of Statistics on Friday released inflation figures, showing that the prices of goods and services for people earning up to Rs 3000 per month have soared by 33.1 per cent during the week ended on July 17 over the same week of the last year. The average inflation for all income groups, ranging from Rs 3000 to above Rs 12000, also jumped over 30 per cent, which is also the highest one in the last 30 years. Gulfraz Khan, a taxi driver and father of four children, is worried how to manage three times meal for his family. "I pay a fix amount to taxi owner on a daily basis but my income has reduced due to high CNG prices", he said and added, his daily income has gone down by almost half, as more and more people have started preferring vans over cabs. Gulfraz Khan's worries are doubled, as with a decline in his daily income, his expenditures have also increased. "My wife complains she cannot manage three times meal with Rs 100 anymore and needs more money to buy things", he added.      The FBS, the national data collecting body, releases weekly inflation figures based on Sensitive Price Index. It records latest prices of 53 essential commodities, mostly kitchen items, across the country. The statistics showed the prices of 46 goods increased in the range of two per cent to 128 per cent. The rates of tomatoes, eggs, potatoes, onions, wheat, pulses, tea, flour, bread, chicken, rice, sugar, milk and mutton increased further over the last year. The government is not willing to take responsibility of inflation by terming it a global phenomenon due to high oil and food prices in the international market. On the other hand, the economists do not accept the government argument by labelling it half truth. They are of the view that the government has not managed either imported inflation or cost-push inflation. The strongest argument they present is that the agriculture is the strength of Pakistan and the country should be self-sufficient in food products.   The economists say the mismanagement of food supply chain is one of the main reasons, which is fuelling the inflation.

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