Reduced inflation, high prices

According to the report of Pakistan Bureau of Statistics, rate of inflation based on Consumers Price Index has gone down from 10.2 percent in February to 8.5 percent in last month. Measured on the weights of sensitive price index, inflation rate has declined to 9 percent. On the contrary, sharp rise in the prices of wide range of food commodities and other goods of daily consumption tells altogether different story, despite abundant supply in the wholesale and retail markets.

Food items such as potatoes, onions, apple, banana, muskmelon, meat, pulses sugar and packed milk are being sold at very high prices. Price control measures by district administration are not being taken under the relevant provincial and federal laws. From wholesaler to retailers pseudo rates are charged, pushing up food inflation. The distributors and wholesalers complain against manipulative practices of food cartels. It remains to be seen how far lowering of petroleum products prices, particularly of diesel reflects in low transportation charges of food commodities and proportionate fall in the prices of consumers’’ goods.