ACCORDING to the latest data released by the Pakistan Bureau of Statistics, inflation has shown a downward trend for the third consecutive month, While this might seem like a positive development at first glance, the reality is more nuanced. The inflation rate, settling at 20.68 percent year-on-year in March 2024, marks a decrease from the previous month’s 23.1 percent but remains alarmingly high, especially considering it is still in double digits. This reading for March is indeed the lowest since May 2023, but it is crucial to recognize the context within which this decline is occurring.
The deceleration in inflation can be attributed to moderated price increments in key sectors such as food and non-alcoholic beverages, clothing and footwear, transportation and restaurants and hotels. However, it is noteworthy that despite these improvements, sectors like housing and utilities witnessed a marginal uptick and were recorded at 36.6 percent compared to the previous month’s 36.1 percent, indicating persistent challenges in these areas. The current inflation rate raises concerns about the economic well-being of the population, especially the vulnerable segments of society. The recent increase in the tariff of electricity and gas bills exacerbates the situation, making it increasingly difficult for households to manage their expenses. Additionally, the rise in petroleum prices adds to the burden, impacting transportation costs and everyday expenses for individuals and businesses alike. It is evident that the country is facing a challenging economic situation, and the government is actively seeking another IMF deal to stabilize the economy. While tough decisions are inevitable in such circumstances, it is crucial for policymakers to prioritize the welfare of the people, particularly the vulnerable and middle-class segments of society. Enhancing support for the salaried class, which is among the most impacted by inflation and rising utility tariffs, should be considered and done so across-the-board.
