Daily Times

The government must finally overcome its sense of denial and treat inflation as its number-one problem. According to data released by the Pakistan Bureau of Statistics (PBS) on Saturday, the Consumer Price Index (CPI) went up by 1.97 per cent from last month, hitting 14.6 per cent in January, the highest in 12 years. In the face of wheat and sugar shortage, the government failed to control the prices of food items in both urban and rural areas. The most price inflated items remained wheat, flour, pulses, sugar, and edible oil. Overall, the inflation hit rural areas the hardest where essential food items, especially vegetables and fruits, were sold at higher rates than in urban areas. Whereas the government has withheld increase in natural gas prices to save urban areas a little, it looked the other way when dealers increased the prices of LPG cylinders, the only means of fuel for the rural population. The hike in inflation is again the byproduct of exchange rate depreciation and higher international commodity prices besides regional and international conflicts. Moreover, harsh weather can also be attributed to the price hike in vegetables and fruits. As per the PBC data, food inflation went up in urban areas by 19.5 per cent in January on a yearly basis and 2.7 per cent on a monthly basis. Likewise, inflation increased by 23.8 per cent on a yearly basis and 3.4 per cent on a monthly basis in rural areas. The data speaks for itself that rural areas have been the worst hit by food inflation where people with modest means are finding it increasingly difficult to make ends meet.

Worst news is likely to come during the rest of this fiscal year as the International Monetary Fund, Asian Development Fund and the World Bank all have estimated inflation as high as 13 per cent. Controlling inflation is a joint fight of the centre and provinces. Recently, Punjab and Sindh governments have taken exemplary actions against wheat and flour hoarders, bringing down the flour prices from Rs70 per kg to Rs45 per kg, averting a food crisis. Prime Minister Imran Khan has himself taken interest in arresting food shortage. Now, he should show the same level of keenness to control inflation. *