DATA released by Pakistan Bureau of Statistics (PBS) on Monday showed the annual inflation rate rose to 31.4 percent in September from 27.4 percent in August. On a month-on-month basis, inflation climbed 2pc in September, compared to an increase of 1.7pc in August. Food inflation remained elevated at 33.1pc with the year-on-year increase in non-perishable food items at 38.4pc and 4.37pc for perishable food items.
It is a sorry state of affairs that inflation remained unbridled despite the change of three governments during the last five years. The latest figures are worrisome as the inflation has increased despite some administrative measures taken by the government that are supposed to have a salutary impact on the overall price situation. It is argued that reforms required by the IMF bailout, including an easing of import restrictions and a demand that subsidies be removed, have fuelled annual inflation which rose to a record 38pc in May. Interest rates have also risen to their highest at 22pc and the rupee hit all-time lows in August before recovering in September to become the best performing currency following a clampdown by authorities on unregulated forex trade. The prices ought to come down because of an improvement in the worth of the rupee and a downward revision in the prices of the POL products but it is unlikely it would happen because of weak enforcement and greed of the unscrupulous elements within the business community. However, gains in the realms of exchange parity and reduced prices of oil would be digested by the ending hike in the price of electricity. As consumers were already protesting against a record increase in electricity bills, NEPRA, on Monday, notified a hike of Rs3.28 per unit in the price of electricity as part of the quarterly adjustments which would translate into a financial burden of Rs. 135.5 billion on consumers. Plans are also afoot to hike the gas tariff and that too ahead of winter months when its consumption increases, putting more burden on the inflation-hit people. The situation calls for urgent measures to address the challenges facing the energy sector as the country cannot progress at the desired pace with back-breaking tariffs.
