SPI Index and government

Written by The Frontier Post

The Sensitive Price Indicator (SPI) based weekly inflation for the week ended on April 15, for the combined consumption group, witnessed increase of 0.54 percent as compared to the previous week. According to Pakistan Bureau of Statistics, the SPI for the week under review in the above-mentioned group was recorded at 148.80 points against 148.00 points registered in the previous week. The weekly SPI with base year 2015-16=100 is covering 17 urban centers and 51 essential items for all expenditure groups. It said that the prices of 11 items decreased, 16 items increased while that of 24 items remained constant during last week. The items, whose prices witnessed decrease are garlic, gram pulse, moong pulse, masoor pulse, mash pulse, LPG cylinder, gur, eggs, sugar, rice (Irri 6/9) and onions. While the commodities, which recorded increase in their average prices, include bananas, telephone call, tomatoes, potatoes, wheat flour, shirting, beef, mutton, washing soap, rice (Basmati broken), chicken, loose cooking oil, vegetable ghee, mustard oil and toilet soap. As per report, the items with un-yielded prices were bread, milk, curd, milk (powder) salt, chilies, tea (packet), cooked beef, cooked daal, tea (prepared), cigarettes, long cloth, lawn, georgette, gents sandal, gents chappal, ladies sandal, electricity charges, gas charges, firewood, energy saver, match box, petrol and diesel.

The Pakistan Bureau of Statistics (PBS) is a governmental institution which monitor the commodities prices throughout the year. The Bureau usually projects a gambit of vague calculations which remains un-understood for the masses, however, the duties of the bureau stand fulfilled. It is just a play with the people of the country to keep them satisfied with the performance of the government through provision of half true data. It has been noticed that the Bureau is calculating inflation with respect to spending group slabs which starts form Rs. 22, 889 to Rs. 29, 517, equal to the salary slab for government employees of PBS-5 and also present the inflation in group percentage rather than of single commodity, whereas it must start from the minimum wage of a labour that is Rs. 15000. However, the public who face unbearable inflation daily do not have any faith in government’s statistics. Therefore, the government must act to overcome inflation instead of floating so-called artificial solutions to the problem.

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The Frontier Post

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