Inflation Rises to 11.11% in the Month of April

 


In the month of April, the people of Pakistan have had to endure an inflation of double digits. The figure skyrocketed to more than 11% as prices of food rose significantly. The Ministry of Finance, however, has still failed to provide a professional and realistic assessment of the rising prices in the monthly reports it issues. 

The Pakistan Bureau of Statistics (PBS) recently reported that the Consumer Price Index of Pakistan crossed 11% in the month of April in the year 2020 as well. It had been the highest rate of inflation witnessed in the country over the course of 13 months. Moreover, in February of last year, the inflation had risen to 12.4%. 

The current rate is notably higher than the projection provided by the Ministry of Finance of 8 to 9.5% in a monthly report that it published a couple of days ago. It was mutually decided between officials of the Ministry to understate the projections for inflation, even though experts from the Ministry of Planning had been anticipating an inflation rate of around 11%. 

Sources revealed that the economic adviser wing of the Ministry of Finance was aware of these estimates made by the Ministry of Planning. However, it chose to publish an unrealistic and understated figure. Even the market had expected that the rate of inflation would stay around 11% because of the abnormally high prices charged for food items during the month of Ramazan. 

The PBS further added that the rates of electricity in this year are at least 29% higher than they were a year ago. In addition, all kitchen-related items showed a double-digit rise in their prices, including sugar, wheat flour, and wheat. 

The chicken prices recorded in the month of April were revealed to have skyrocketed around a 100%. This was followed shortly by a 42% increase in the price of eggs, 81% rise in tomato prices, and 27% in wheat prices. 

As per statistics revealed by the PBS, the prices of wheat flour and wheat will continue to stay under pressure because of the decrease in production. The production has been continuously falling short of consumption by nearly three million metric tons. 

Prices for cooking oil had risen by 19% in the month of April. Meanwhile, higher prices were being charged for sugar and wheat flour at 18% and 17% respectively. 

The PBS went on to report that inflation had not only risen in urban cities but rural areas as well. Where the inflation rate in cities rose to more than 11% in the month of April, rural areas experienced an inflation rate of 11.3% at the same time. 

Moreover, food inflation was also higher and even more so in urban areas rather than villages. In the former, it jumped from 11.5% to 15.7%, whereas in rural areas, it rose from 11.1% to 14.1%. The increase in urban centers was 4.2% in a month and a surge of 3% was recorded in villages in the country. 



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