Galloping inflation pushing more people below poverty line

from the News International

By Israr Khan

ISLAMABAD: Soaring inflation, coinciding with the prevailing emergency in Pakistan, has impacted social and economic aspects of the life of common man and has become a source of irritation for the whole nation.

The government efforts have failed to control inflation or to reduce its impact on masses.

The weekly Sensitive Price Indicator (SPI) inflation bulletin, covering prices of 53 essential items from 17 cities, gave a grim picture. It reveals that during the week ended on November 8, 2007, the prices of ordinary kitchen items soared by 9.84 per cent over the corresponding week of the last fiscal 2006-07.

According to the Federal Bureau of Statistics (FBS) data, the most irony was that for the lowest income group earning less than Rs3,000 witnessed double-digit growth of 12.06 per cent during the week. For the income group ranging from Rs3001 to Rs5000, SPI inflation is 11.96 per cent, for the group earning Rs5001 to 12000, it is 10.87 per cent and the people earning above Rs12,000, the SPI inflation is only 7.47 per cent. The government estimates show that about 23 per cent of the population is living below the poverty line. Independent economists say that if the government were unable to contain inflation, it would increase the number of poor living below the line.

Alarmingly, the prices of 24 essential also increased ranging from one per cent to 38 per cent in a week time, bringing the lowest income groups at toes, the FBS figures revealed. On prices side, the rates of 24 essential commodities swelled, merely four itemsí decreased and 25 products prices remained same as of the previous week.

The commodities that witnessing increase in their prices in a week time included tomatoes 38 per cent, LPG (11kg cylinder) 10 per cent, mustard oil 5.6 per cent, vegetable ghee loose four per cent, eggs per dozen 3.8 per cent, salt powdered 3.7 per cent, masoor pulse two per cent, red chillies 1.9 per cent, rice basmati 1.5 per cent, wheat flour 1.3 per cent, rice Irri-6 one per cent, potatoes 0.9 per cent, moong pulse, vegetable ghee, cooking oil and firewood 0.6 per cent.

On year basis, the rates of following commodities recorded price hike as follows: tomatoes 65.2 per cent, LPG 23 per cent, mustard oil 55.9 per cent, vegetable ghee 52.4 per cent, eggs 29.5 per cent, salt 6.3 per cent, masoor pulse 40 per cent, red chillies 49.5 per cent, rice basmati 59.7 per cent, wheat flour 25 per cent, rice (Irri-6) 48 per cent, vegetable ghee 29.8 per cent, cooking oil 29.7 per cent, firewood 12.4 per cent, shirting 8.2 per cent, wheat 28 per cent, electric bulb 5.2 per cent, mutton five per cent and beef three per cent.

On the other hand, on week basis, the rates of following commodities declined: chicken six per cent, onions 3.8 per cent, gur 0.6 per cent and sugar 0.4 per cent.