Pakistan's Inflation Crisis: A Nation Under Pressure

Pakistan faces its 16th consecutive weekly inflation rise, driven by escalating food and energy costs. The Sensitive Price Index indicates a 3.53% year-on-year spike. Supply disruptions and soaring sugar and meat prices strain households, highlighting flaws in market stabilization efforts and economic policies.

Pakistan is grappling with a relentless surge in inflation, marking the 16th consecutive week of rising prices as the cost of food and energy continues to soar across the nation. According to the Sensitive Price Index (SPI), there was a 3.53 percent year-on-year increase in the week ending November 20, fueled by skyrocketing prices of essential commodities like edible oil and sugar.

Official figures released on Friday reveal that while the week saw a modest inflation increase of 0.07 percent compared to the previous one, the persistent trend of rising prices reflects significant economic distress for ordinary Pakistanis. With purchasing power dwindling and incomes stagnating, the relentless inflationary pressure affects daily lives, as reported by Dawn.

Dawn highlights that the latest inflation spike stems primarily from supply chain disruptions affecting perishable goods like vegetables and flour, largely due to the Pakistan-Afghanistan border closure. Consequently, local markets face shortages, exacerbating inflationary pressures. Additionally, rising sugar and meat prices have further burdened household budgets.

Inflation in Pakistan remains unpredictable. The SPI hit a historic high of 48.35 percent in May 2023, dropped to 24.4 percent in August, but surged again, exceeding 40 percent by mid-November. Economists caution that such volatility underscores fundamental weaknesses in supply management and energy pricing strategies.

The government struggles to stabilize the markets despite repeated assurances and interventions, as reflected in the SPI's tracking of price hikes across 51 essential goods in 17 cities. Most essential items either continued to rise or remained unchanged, indicating deep-rooted inflationary challenges.

With food and fuel costs climbing, millions of Pakistanis struggle to afford basic necessities, fueling public discontent and exposing the government's inability to rein in runaway prices, as reported by Dawn and ANI.

(With inputs from agencies.)