SBP says inflation will ease but what about soaring prices of power, gas, POL products?
Business
People want reduction in their expenditures
LAHORE (Web Desk) – Is inflation going to decline in Pakistan? Although still touching a record-high level and continuing to be unbearable for the masses, the State Bank of Pakistan (SBP) thinks that inflation would be easing through the rest of the fiscal year 2023-24. The question is: Can we even think so when the gas, electricity and petrol/diesel prices are being hiked?
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The statement about a reduced inflation rate was made SBP Monetary Policy Department Director Fida Hussain during a latest podcast where he not only predicted a decline in inflation but also an improved economic outlook, which was the reason behind the central bank’s decision to maintain the key policy [interest] rate.
Given the ground realities, the inflation-hit people of Pakistan doubt such claims and want a proof in the shape of reduction on food prices and other daily use items.
What makes them question such talk is the repeated increase in gas and power tariffs as well as the prices of petroleum products.
Read more: Has the devastating inflation triggered a social change in Pakistan?
Commonsense says it isn’t possible no matter what the figures may suggest. Higher gas and electricity tariffs means they pay more every month.
Moreover, the higher petrol and diesel prices translates into a greater daily transportation cost while they are also charged more for vegetables and other goods by vendors and traders who cite the same reason.
Read more: Skyrocketing transportation cost means people need mass transit system even more
In short, the only criterion for the people is a decrease in their expenditures, resulting in an improved purchasing power? All the talk about reduction in inflation and the related number game is meaningless for the masses.
