Reading this report from Rueters, I believe its a good news for a normal consumer. And it has a lot to do with Petrol prices going down to 69 per litre. Keeping the least of expectations, it appears to be a lil ease in the misery of a common man.
KARACHI: Pakistan’s annual inflation fell to 3.24 per cent in February from 3.96 per cent in January, the Pakistan Bureau of Statistics said on Monday, with the key factor being a fall in fuel prices.
On a month-on-month basis, prices rose 0.92 per cent in February.
Average inflation in the period from July to February was 5.45 per cent.
Falling fuel prices were a major contributor to the decline in prices, said Shaukat Khan, the director of the bureau of statistics.
Another factor responsible for the lower inflation rate is the lowering of the interest by the State Bank to a 10-year low in January.
The slash in the interest rate had followed a previous decrease announced in November 2014.
The International Monetary Fund had also predicted that the Average inflation will ease to below 8pc in fiscal year 2014-15 and fall further thereafter, as inflation expectations will be anchored by tight monetary policy and sustainable fiscal policy.
(Reuters)
Re: Inflation dips down in Pakistan: Good news for consumers?
If inflation has gone down why the prices have gone up on month to month basis????
That is not a good news for consumers.
That is due to the monopolistic nature of the Pakistani economy. Its because of the different small groups that control the production of food and other items. It is also because of the population explosion meaning that resources are scarce and prices will rise.
However please note that prices dropped a few months back when the price of petrol also dropped.
Re: Inflation dips down in Pakistan: Good news for consumers?
I have friends and relatives back home and when we compare prices like lets say 5 or 10 years, Pakistani prices have gone way up to believe this 3% figure. Last five years would easily be without the subsidies that PPP govt withdrew on advice from the IMF.
Re: Inflation dips down in Pakistan: Good news for consumers?
One thing which may not be relevant entirely to the topic is that while the oil prices were dropping acutely and here in US the gas prices were going way cheaper, it was easier to note that the inflation rate wasnt dropping that much at all. The daily commodities were pretty much same price, even things like egg milk or bread. Ofcourse US is a pure capitalistic market so I think it all depends upon X-factors and the way these big stake holders make their moves.
Re: Inflation dips down in Pakistan: Good news for consumers?
If inflation rate from this site is believed:
then its really good for economy, and common public. Is there a comparison available for prices of food items like eggs, milk, bread, flour, cooking oil for past 5 years?
Re: Inflation dips down in Pakistan: Good news for consumers?
Because prices are still increasing but at a decreasing rate.
It is like if population growth rate increases, but still the overall population will increase.
Anyways, the inflation rate decrease has much to do with decrease in international oil prices.
Prices of oil is increasing in America. It has already moved up from $2.11 per gallon to $2.55 per gallon in a very short period of time. So according to you the bubble of inflation is about to burst again in Pakistan.
Re: Inflation dips down in Pakistan: Good news for consumers?
Prices of oil is increasing in America. It has already moved up from $2.11 per gallon to $2.55 per gallon in a very short period of time. So according to you the bubble of inflation is about to burst again in Pakistan.
There is a delay (around 2/3 months) before oil prices are reflected in general inflation (cost for businesses goes down). The oil price came down from around $95 to $50 in the last 6 months. Lowest was around $45 around start of February. I guess it would depend on how much longer NATO wants to hurt Russia before the prices bounce back. Inflation in Pakistan came down from around 8% to 4% during the same period.
If international oil prices increase, we would again see higher inflation. It impacts Pakistan a lot since most of our energy needs are fulfilled through imported oil.
