Impact of imflation on society.

 Impact of  INFLATION on society 

There is hardly a thing or commodity whose price has not gone up in the recent times. Rise in prices has become a common feature in Pakistan and the people are reconciled to this fact. 

Rise in prices is called inflation.There are various factors that contribute to this rise in prices. Some are natural factors like unfavourable weather conditions which affect the food production and lead to the shortage of commodities in the market. With more money chasing fewer goods, the prices take to the wings.

Compounding this natural problem are other man-made problems like storage which contribute to the escalation of prices. The moment the trading community senses a shortage of certain commodities or products, especially the essential commodities; they resort to large scale storing. They release the stored commodities after escalation of the prices and make a neat margin over their investment in the stored commodities. Though the government has the necessary powers to check storage it does not have the necessary manpower to contain the despicable acts like storage.

Apart from the natural factors and the man-made factors like storage that add to the rise in prices or inflation, the government too contributes its bit to the escalation of prices by imposing higher taxes on raw materials and finished products. With the government nature and hoarders adding their bit to the inflationary trends, is it any surprise then that rise in prices has become a common feature in Pakistan?

In the recent times the rate of inflation has been hovering around 10 to 20 per cent. This is, of course, the official rate of inflation. But the rising prices in the retail market do not actually reflect this modest rate of inflation as these figures relate to the Wholesale Price Index and have no relation to the exorbitant retail prices.

To keep the prices of essential commodities under control, and within reasonable limits, the government had constituted the Cabinet Committee on Prices and the Special Committee of Secretaries on Monitoring Prices. These bodies monitor the prices and supplies of essential commodities regularly. Apart from these, the Department of Consumer Affairs monitors the prices of 12 essential commodities such as; wheat, rice, sugar, groundnut oil, mustard oil, banaspati, salt, tea, potatoes and onions on a daily and weekly basis. Those commodities that are in short supply are importeThough the government’s steps to check inflation are laudable, these measures will have a positive impact on the prices only when they are coupled with a massive drive against hoarders, black marketers and anti-social elements. The unprecedented rise in the prices of vegetables and crops in 2023 testifies to the power of the hoarders who can play havoc with the market. Unless hoarding and black marketing are effectively checked, prices will continue to rise.