THIS is with reference to the report ‘Inflation falls to 34-month low at 9.6pc in August: PBS’ (Sept 2). After years of a dizzying ascent, the inflation rate eased to a modest level in August, down from a back-breaking 30.8 per cent in 2023. For those keeping track, that is the lowest reading since October 2021. So, should we break out the confetti? Perhaps. But let us not celebrate just yet, for there is still a bumpy ride ahead.
Let us rewind a bit. Inflation, for the last five years has been a bit like that houseguest who overstays the welcome. In 2019, it was a ‘humble’ 9.4pc, barely budging in 2020 and 2021. Then came the year 2022, and the guest decided to throw a wild party, with inflation soaring to 19.9pc. But the real showstopper was 2023 when inflation reached a staggering 30.8pc.
Now the question is: does the data for August 2024 represent a glimmer of hope, or is it a mirage? Housing and utility prices have mercifully slowed down, from 25.3pc in July to a more ‘bearable’ 22.2pc. Transportation costs, once galloping at 12.2pc, have also taken a breather at 3.2pc. Even clothing and footwear are feeling the relief, dipping from 18.2pc to 17.3pc.
This makes one think that with such a significant decline, the average Pakistani household would be enjoying some relief. But let us not have delusions. A single-digit inflation rate might sound like a victory, but when it is still hovering around 9.6pc, the reality is more sobering. The fact that we are celebrating this as a triumph only highlights how deeply inflation has become entrenched in the country’s economic landscape. The real kicker is in the fine print.
In fact, the Consumer Price Index (CPI) still rose by 0.4pc in August after a 2.1pc hike in July. This means that while the inflation rate may be lower, prices are still creeping up, as relentlessly as ever.
Indeed, a slower punch to the gut is still a punch. Is it not?
The inflation problem is not just about numbers on a chart. It is about the daily reality of millions of Pakistanis who have to make impossible choices. Should they pay the electricity bill, or buy enough food to last the month?
Unfortunately, what is often overlooked in this national conversation is that inflation is not just an economic issue; it is a moral one. When the cost of living outstrips wages, and when people cannot afford basic necessities, it is not just their wallets that suffer; it is their dignity as well. And in a country where keeping up appearances is a social norm, that is a blow that hits even harder.
If the government really wants to win this crucial battle against soaring rate of inflation, it needs to go beyond temporary fixes, and address the underlying causes. Otherwise, we will be right back here next year, with the same headlines and, indeed, the same hollow celebrations.
Rizwan Anees Qureshi
Islamabad
Published in Dawn, September 12th, 2024
