October inflation eases slightly to 8.9pc , inflation of food group rose to 16.53pc YoY

[muhammadhafeezmalik]

Inflation eased slightly to 8.9 per cent in October, from 9pc in September on the back of a slight decline in prices of fresh fruits and vegetables, data released by the Pakistan Bureau of Statistics showed on Monday.


Higher food prices continued to exert upward pressure on inflation as prices of food group rose 16.53pc year-on-year and 3.9pc month-on-month in October.


The prices of essential food items — tomatoes, onions, chicken, eggs, sugar and wheat — have seen consistent increase over the last couple of months. Having maximum share in the food basket, a slight increase in kitchen items raises overall inflation.


Year-on-year in October, wheat price went up by 52.21pc, wheat flour 24.67pc, rice 8.6pc, eggs 43.32pc and sugar 32.97pc.


With shortages in domestic production, the current fiscal year started with 9.3pc inflation in July, which eased to 8.2pc in August before rebounding to 9pc in September.

Food prices see continuing increase of 16.5pc

The average CPI between July and October eased from last year’s 10.32pc to 8.86pc this year, but the average CPI in FY20 rose to 10.74pc, from 6.8pc in the year before — highest level since 2011-12 when it stood at 11.01pc.


Food inflation is still in the double-digits, posting a rise in the outgoing month.


In urban areas, it jumped by 13.9pc in October on a yearly basis and an increase of 2pc on a monthly basis whereas the respective price level growth in rural areas stood at 17.7pc on a yearly basis and an increase of 4.3pc on a monthly basis.


In urban areas, food items that saw a jump in prices this month from previous include tomatoes, up 48.36pc; onions 39.07pc; chicken 26.62pc; eggs 23.81pc; wheat 8.39pc; wheat products 8.07pc; sugar ;4.58pc; wheat flour 4.1pc; besan 2.89pc; pulse moong 1.69pc; rice 1.45pc; pulse mash 1.26pc; readymade food 0.98pc; gram whole 0.85pc; pulse masoor 0.85pc; potatoes 0.82pc; pulse gram 0.81pc and butter 0.78pc.


The items whose prices declined in urban areas were fresh vegetable, down 6.36pc, fresh fruits 3.31pc and condiments and spices 2.39pc.


In rural areas, price increase was seen in tomatoes, higher by 64.99pc; onions 58.39pc; eggs 24.88pc; chicken 23.14pc; wheat 5.54pc; sugar 4.89pc; fresh vegetables 4.06pc; fresh fruits 3.5pc; wheat flour 3.28pc; wheat products 3.07pc; potatoes 3.05pc; pulse masoor 2.97pc; dry fruits 2.73pc; honey 2.5pc; fish 2.38pc; bakery and confectionary 2.38pc; meat 1.76pc; pulse mash 1.6pc and cooking oil 1.47pc.


On the other hand, drag on price levels came from pulse moong (2.91pc), condiments and spices (1.85pc) and beans (0.71pc).


Meanwhile, non-food inflation in urban centres was recorded at 3.6pc year-on-year and 0.3pc month-on-month basis, whereas in rural areas, it rose by 5.8pc and 0.5pc, respectively.


The urban consumer price index covers 35 cities and 356 items, while the rural one tracks 27 centres and 244 products. The former grew by 7.3pc year-on-year in October whereas the latter jumped by 11.3pc.


Core inflation in urban areas was 5.6pc in October as against 5.5pc the previous month. In rural areas, the corresponding eased to 7.6pc from 7.8pc.


The central bank determines the key policy rate, currently at 7pc, based on the core inflation rate. The SBP has reduced the rate by a cumulative 625 basis points since March 17 to combat uncertainty amid the coronavirus pandemic.


Average inflation measured by the sensitive price index edged up to 12.3pc during October from 12pc during the previous month, while the wholesale price index rose from last month’s 5.1pc to 4.3pc the previous month.


Published in Dawn, November 3rd, 2020

 

[muhammadhafeezmalik]

 

[313ghazi]

It boggles the mind. A nation with a large amount of arable land, a large young population, and yet food is expensive.

 

[Norwegian]

It boggles the mind. A nation with a large amount of arable land, a large young population, and yet food is expensive.

Food inflation is high in entire region due to coronavirus disruptions

 

[313ghazi]

Food inflation is high in entire region due to coronavirus disruptions

It might be the same everywhere but i don't feel the difference in my pocket in the UK. In Pakistan our consumers are feeling the difference and we are scoring a massive own goal by not addressing this.

The thing we need to ask ourselves is - Are we meeting our potential in agriculture? The answer is no.

My solution is that we use state owned land to create private commercial farms, which are managed by private companies and the state dictates what price it will buy their crops for. These crops are them processed into food products at state owned but privately managed factories, or kept as raw produce. This produce is then sold at privately owned shops up and down the country with state mandated prices which are printed onto the products or published in all newspapers/online/via social media, so people know the prices.

The benefits;
- Mass employment in agriculture, which naturally will be in the more rural areas.
- Employment in warehouses and manufacturing plants which will be located in urban areas.
- Employment in transportation industry.
- Cheap, price controlled produce available at local shops for all Pakistani consumers
- State doesn't pay a penny in costs, it gives out land for free on 100 year leases. It covers the costs from ground to plate through the money earned from the produce. That money is paid back to the private companies hired to manage the various stages of the produce.
- Companies are bound by contract to generate at stated prices, so will have to become efficient if they want to make higher profits.
- Not a single government employee or political figure in the entire process, so no scope for corruption.
====

It will never happen of course. Govt is full of feudals who stand to get competition if they do this. The only way we could convince them is if govt was to legislate that anyone involved in this chain would not be allowed to export and all produce would be for domestic use. That way they could export more goods.

Of course i only want to to this to break the strangle hold of the food mafia. Once that is done state land should be leased to anyone who wants to grow produce to export. As long as it meets standards.

 

[muhammadhafeezmalik]

Food inflation is high in entire region due to coronavirus disruptions

Food inflation in India, Bangladesh is less than 6% and in Sri Lanka it dropped by 3%.

It might be the same everywhere but i don't feel the difference in my pocket in the UK. In Pakistan our consumers are feeling the difference and we are scoring a massive own goal by not addressing this.

The thing we need to ask ourselves is - Are we meeting our potential in agriculture? The answer is no.

My solution is that we use state owned land to create private commercial farms, which are managed by private companies and the state dictates what price it will buy their crops for. These crops are them processed into food products at state owned but privately managed factories, or kept as raw produce. This produce is then sold at privately owned shops up and down the country with state mandated prices which are printed onto the products or published in all newspapers/online/via social media, so people know the prices.

The benefits;
- Mass employment in agriculture, which naturally will be in the more rural areas.
- Employment in warehouses and manufacturing plants which will be located in urban areas.
- Employment in transportation industry.
- Cheap, price controlled produce available at local shops for all Pakistani consumers
- State doesn't pay a penny in costs, it gives out land for free on 100 year leases. It covers the costs from ground to plate through the money earned from the produce. That money is paid back to the private companies hired to manage the various stages of the produce.
- Companies are bound by contract to generate at stated prices, so will have to become efficient if they want to make higher profits.
- Not a single government employee or political figure in the entire process, so no scope for corruption.
====

It will never happen of course. Govt is full of feudals who stand to get competition if they do this. The only way we could convince them is if govt was to legislate that anyone involved in this chain would not be allowed to export and all produce would be for domestic use. That way they could export more goods.

Of course i only want to to this to break the strangle hold of the food mafia. Once that is done state land should be leased to anyone who wants to grow produce to export. As long as it meets standards.

We should teach our children how to preserve food by turning it into jam, jelly, pickle, marmalade, sauces etc.

Kitchen gardening may be another solution.

 

[HaMoTZeMaS]

It might be the same everywhere but i don't feel the difference in my pocket in the UK. In Pakistan our consumers are feeling the difference and we are scoring a massive own goal by not addressing this.

The thing we need to ask ourselves is - Are we meeting our potential in agriculture? The answer is no.

My solution is that we use state owned land to create private commercial farms, which are managed by private companies and the state dictates what price it will buy their crops for. These crops are them processed into food products at state owned but privately managed factories, or kept as raw produce. This produce is then sold at privately owned shops up and down the country with state mandated prices which are printed onto the products or published in all newspapers/online/via social media, so people know the prices.

The benefits;
- Mass employment in agriculture, which naturally will be in the more rural areas.
- Employment in warehouses and manufacturing plants which will be located in urban areas.
- Employment in transportation industry.
- Cheap, price controlled produce available at local shops for all Pakistani consumers
- State doesn't pay a penny in costs, it gives out land for free on 100 year leases. It covers the costs from ground to plate through the money earned from the produce. That money is paid back to the private companies hired to manage the various stages of the produce.
- Companies are bound by contract to generate at stated prices, so will have to become efficient if they want to make higher profits.
- Not a single government employee or political figure in the entire process, so no scope for corruption.
====

It will never happen of course. Govt is full of feudals who stand to get competition if they do this. The only way we could convince them is if govt was to legislate that anyone involved in this chain would not be allowed to export and all produce would be for domestic use. That way they could export more goods.

Of course i only want to to this to break the strangle hold of the food mafia. Once that is done state land should be leased to anyone who wants to grow produce to export. As long as it meets standards.

thats what i want to see happen as well but Alas

 

[AZ1]

Imran khan ne india mai bhi mehngai kardi

 

[Arsalan 345]

Sugar was 98rupees per kg,now it's 105 and tomato is now 200 rupees per kg. Wheat prices already increased. If a person earns 20 thousand per month, he can't survive. Wadaera and corrupt officers, government officers( illegally getting jobs without merit) can easily afford it.

 

[Norwegian]

My solution is that we use state owned land to create private commercial farms, which are managed by private companies and the state dictates what price it will buy their crops for. These crops are them processed into food products at state owned but privately managed factories, or kept as raw produce. This produce is then sold at privately owned shops up and down the country with state mandated prices which are printed onto the products or published in all newspapers/online/via social media, so people know the prices.

Govt dictating prices is the reason why we are in this mess in the first place

thats what i want to see happen as well but Alas

Govts cannot create markets and efficiently run them. Private sector must do it on their own.

Sugar was 98rupees per kg,now it's 105 and tomato is now 200 rupees per kg. Wheat prices already increased. If a person earns 20 thousand per month, he can't survive. Wadaera and corrupt officers, government officers( illegally getting jobs without merit) can easily afford it.

So what? Prices are market adjusted. Be happy govt is not giving subsidies on these essentials or else we would have trillions of Rs in debt just like circular debt in electricity sector.

Food inflation in India, Bangladesh is less than 6% and in Sri Lanka it dropped by 3%.

Indian food inflation is more than 10 percent, Patwari

https://twitter.com/x/status/1314860467723141125

Kitchen gardening may be another solution.

Already tried in the 90s by your Ganja Sharif brothers. Didn't work