Now we’re in that cycle where inflation will shock to the upside and even beat the finance ministry and state bank’s expectations, as it did in June when it broke a 13-year record and clocked in at 21.3pc. Last time it was recorded at a little over 21pc and ate into individual and household savings in this way was in Feb-09. And the way it is hiking, beating all estimates, goes to show two very important things. One, even though food and energy inflation is highest in a long time, more in rural than urban areas, core inflation, which discounts these two heads, is also at near-record levels. That shows inflation is rising across all sectors, including services now. And two, all the usual market manipulation and hoarding that comes in such societies in such times is also proceeding at breakneck pace. Everybody and their uncle are using expensive fuel and energy as an excuse to make their products much more expensive. And the salaried working class and lower classes, all the way to daily wagers, are bearing the brunt of this trend because their meagre incomes are still fixed, which means they are constantly diminishing in real terms. Since there’s also much more inflation down the road, especially more expensive fuel and gas, all this begs the question of just how long the government is going to raise prices and taxes and cut subsides because the people’s patience, as well as their ability to meet their expenses, is all but worn out. Its dilemma is that it must do whatever the IMF demands, or there will be no bailout program and no other loans and therefore no way to meet the $37-40b due in debt payment over the new fiscal year. The real question, then, is how much further the Fund is going to push the government, which will determine how much deeper inflation is going to bit the common man. *