Why has Inflation increased 36.3% in two years ?

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Why has Inflation increased 36.3% in two years ?

(22 posts)

hariskhan
member

Assalam-o-Alaikum-Warahmat-ULLAH ALL,

DAWN News: Inflation increases 36.3pc in two years

Thursday, 11 Mar, 2010
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Prices of essential items have continued to increase despite regular reviews of the situation by the government and promise to contain the trend and punish hoarders and profiteers. - File photo

ISLAMABAD: The country has seen a massive 36.3 per cent inflation since the present government came to power in 2008, with prices of two basic commodities, wheat flour and sugar, rising by 83 and 168 per cent, respectively.

According to official figures, the price of flour which was Rs16.41 per kg on Feb 21, 2008, shot up to Rs30.13 on Feb 4 this year — an increase of 83 per cent.

Sugar selling at Rs25 per kg on Feb 21, 2008, recorded a mind-boggling rise of 168 per cent to Rs70 per kg on Feb 4 this year.

The prices of ghee and cooking oil, two important kitchen items, saw an increase of 12 and 10 per cent, respectively, over the past two years. The price of ghee, which was Rs315 for 2.5kg in Feb 2008, is now Rs353.

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- Why has inflation increased 36.3% in the last two years ?

- The price of flour has reached Rs. 590. Why is this so ?

- Where does the money trail lead us ?

Posted 2 years ago on 11 Mar 2010 18:53 #
naseemkhanan
Member

-Because of imported finance ministers.
-Because all what is needed to grow/produce/manufacture is owned by feudals, retired military brass, fake muhajirs who managed to grab property claims and now have grown into manipulative giants.
-Industrialists who have spread their tentacles through dirty politics and politicians to monopolize basic necessities like wheat, rice, sugarcane, cotton, power, fertilizer and pesticides, import of fossil fuels including control of retail outlets. List is long.....

Posted 2 years ago on 12 Mar 2010 8:52 #
choosy
Member

because of failed Govt policies .
because of Mush consumerism policy was a short term.
it has to ditch the economy at the end .
present Govt was religiously following Mush policies .
so it has to fall into the hole .

Posted 2 years ago on 12 Mar 2010 8:55 #
hariskhan
member

Assalam-o-Alaikum-Warahmat-ULLAH ALL,

(4) Who is responsible for this rise in inflation, especially within the last 2 years ?

(5) What is the Govt. doing to remedy the situation ?

Posted 2 years ago on 12 Mar 2010 9:14 #
naseemkhanan
Member

Haris bhai jan. I have tried to answer your question 4 through my above post.
For your question 5 Government (a formation of feudals, Industrialists and bhatta khors) is doing all to aggravate and nothing to remedy this situation.

Posted 2 years ago on 12 Mar 2010 9:35 #
jaypk
Member

@choozay...yaar kab tak musharraf ko ghaseet-tay raho gay...ab us ki jaan chor do...dnt follow the media hype.. 3 saal 4 saal...?? kab taak meray bhai..aaj economy raise ho jaye...aik banda naee bolay ga k yeh musharaf ki policy thee...sub govt ko credit dain gay...and believe me...whn this govt will go and some other will coem...fr thr first 2 3 years they would do the same thing...baraye meherbani ab aap bhee baray ho jain..yeh mera ap ko bhaiyon wala mashwara hay...!

musharraf conusmerism policy was short term..?? prove it..? and come with facts..!! so he deliberatley made the policy which would ditch in the end...how so?? whds the point makin anything whn you and i know tht it would ditch us in the end..?? he knew tht he wouldnt be here fr the rest of his live...so why short term?? and thn you say the Govt is following his policies...so both were bad???...aap khadday main koodnay jao gay...to main bhee ap k peechay khadday main kooddon ga??..!!

bhai meray...ab yeh baatein chor do...ppl are fed up of this..you give the govt a chance to defend themselves whn you say musharaf has done all this...so they also put the blame on him..and get bari-ul-zimma by all the blames...! it has nuthin to do with him...its all a failure of our govt..which dnt know how to govern...and our president as the only thing he has efficienlty done in all this presidencey is ghair mulki doray and foreign visits..to ask for money...!!

Posted 2 years ago on 12 Mar 2010 9:48 #
choosy
Member

@Jaypak,
aap chor deiyn Mush ko ,ap jiasay hi log hain jo kay Mush ko abhi tak zinda rakhay howye hain aur hamesha dictators ko welcome kehnay ko tayyar bethay rehtay hain.

Posted 2 years ago on 12 Mar 2010 9:54 #
jaypk
Member

yaar chozay...

oraap jaisay he log hain jo aik murdah parast blame game quam hain or hae kisi k jaanay k baad us ki buraiyyan kartay hain...!!

search my posts..the previous ones...i have never ever said this tht i liked musharaf..or i favored him..infact i always said tht he dug up his own grave becasue of his blunders.....but yes..if sumone has done a gud thing..may he be any...i appreciate tht...per yeh media ki zuban bolna chor do...k musharaf nay yeh kia woh kia...i bet you cant prove one single thing whdeva you are sayin abt his short term consumerism policies...dnt give me this crap yaar..even the media ppl are sayin now tht whdeva positive steps had been taken in the history of pak..were all in army generals eras....i m nt sayin he was the best...but whd this so called democracy is giving you?? null..!!

Posted 2 years ago on 12 Mar 2010 10:00 #
RajputPuttar
Member

Gentlemen,

Please don't consider it an effort to defend govt. but just wanted to share some facts with u guys on the subject.

a) Oil prices.

http://inflationdata.com/inflation/inflation_Rate/Historical_Oil_Prices_Table.asp

This is a link to yearly oil prices . Its quite obvious that Oil prices touched an unprecendetd during 2008 (To be percise Jul 2008).

The oil prices had been increasing since 2006-07 but then govt didn't transfer the impact to user due to elections due at the end of 2007. It had two sided impact

a) First deterionation of reserves
b) Accumulation of claims by thermal power generators

During last 20/30 years we haven't had any big hydel project apart from ghazi bhroota (Only 1400 mw) , which has shifted our reliance on thermal electricity and when oil prices increased , our energy cost increased as well.

Another aspect of the same phenomenon , the world is in worst recession since the great depression and that has made our exports less lucrative as well.

Wheat

Here is link of wheat prices

http://tfc-charts.w2d.com/chart/CW/M

Again wheat prices peaked early 2008 at around 950$ .Although these prices have declied towards 500$ mark now but still there are a lot higher than any prices set during last 10 years or so (barring 2007).

I don't know , how we can hold GOP responsible for this ?

Sugar

Sugar pheonomenon is even more painful.

From 2001 to 2008 , the sugar prices peaked at 16$ during 2006. And in 2010 , the sugar pices have touched 28$.

http://tfc-charts.w2d.com/chart/CW/M

I am unable to comprehend that how GOP is responsible for this hike as well.

I totally agree that inflation is quite unbearlable and affecting the ordinary person's life but we should give the devel its due share.

In my humble oponion , inflation is quite directly related to national production . Since, our national production is at a halt , the inflation is increasing by leaps and bounds and will continue to do so until we can get a breaktrhough on the other end.

A very visible exmaple i would like to quote is inroduction of BT Cotton. India , has almost doubled its cotton crop size during 1998-2006 but our --PAK ARMY which was ruling the country througn Gen.Mush was making DHA and ASKHARI Housing and we didn't bother to do so. Gentleman , 1 million bale increase in cotton crop translates into around 0.5 % increase in GDP. We achieved a cotton crop of 13.2 million bales in 1991-92 and still standing at the same size .

I request all of u to ponder at the things a bit deeply . We should criticize the govt but shouldn't go for the overkill.

Sorry for a long message.

Posted 2 years ago on 14 Mar 2010 12:09 #
sasherwani
Members

Why has inflation increased by 36.3% in the last 2 years?

1) The Pakistani rupee has fallen around 44% in the last 2 years. (Refer to graph)

http://finance.yahoo.com/q/bc?s=USDPKR=X&t=5y&l=on&z=m&q=l&c=

The instability in Pakistan's economy and peace situation after Zardari came into power has lead non-resident Pakistani people to invest their savings elsewhere. That has decreased the demand for the Pakistani rupee pushing the value of the rupee down.

When the exchange rate of the rupee goes down, the value of all imported goods increases. This is called 'imported inflation'.

2) Corruption and poor management has caused a serious shortage in the quantity/ quality of commodities. This means money is chasing too few goods increasing the price of those goods.

Posted 2 years ago on 14 Mar 2010 12:37 #
RajputPuttar
Member

sasherwani

Very rightly pointed , law and order is another factor which we forget while analyizing the economic situation.

Posted 2 years ago on 14 Mar 2010 12:47 #
sasherwani
Members

@ Rajputtar,

I disagree with your earlier post about crude oil prices. Oil prices have fallen from USD 150 in 2008 to USD 80 today (87% drop) ever since Zardari took power. Yet no positive effect on inflation has been witnessed. How can fuel become cheaper yet no effect is seen on transportation costs lowering the shelving costs?

Musharraf's government started in 2000 with a USD 25 oil price and in 2007 oil price slowly climbed to USD 100 (300% increase). Yet the rupee remained stable and no Hyperinflation was witnessed.

Zardari is a corrupt man! He is looting the country in all ways. Whether its the economics of commodities or the economics of sports, he is stealing from all angles.

Posted 2 years ago on 14 Mar 2010 12:48 #
RajputPuttar
Member

sasherwani

Bahiyaa, u need to see that at what point GOP stopped passing the effect of increased oil pricess to common man. So, when the prices started falling from the hype of 150$ , the impact was not toally passed as well.

Zardari is very corrupt , i agree but Mush was criminally corrupt.

Would u like to comment on BT cotton example i just quoted . If u want , i can give u cotton crop of figure of india for the same period as well.

U can also check that GOP didn't pass the increased petrol price impact during 2007 which resulted in increased pressure on national ex-chequere.

Posted 2 years ago on 14 Mar 2010 12:52 #
sasherwani
Members

The oil price was USD 9.86 in 1999 (during the coup on PMLN government) and it rose to USD 24.11 (144% in one year!) (refer to http://www.ioga.com/Special/crudeoil_Hist.htm for oil price trends).

Posted 2 years ago on 14 Mar 2010 13:02 #
hariskhan
member

Assalam-o-Alaikum-Warahmat-ULLAH ALL,

Who is responsible for managing;

(1) Availability of justice to common man ?
(2) Governance ?
(3) inflation ?
(4) price, availability of basic necessities of life ?
(5) Oil prices ?
(6) Taxation system ?
(7) Zakaat system ?
(8) Education system ?
(9) for managing Pakistan's money

in the last 2+ years i.e., since general elections in Feb, 2008 ?

This Govt. has now spent 752 days in public office.

Posted 2 years ago on 14 Mar 2010 16:30 #
RajputPuttar
Member

Harris

u r pasting sterotype comments on every thread which is totally useless.

Can u plz confine yourself on the topic.

I can also start bashing ji here and u know how good I m at exposing these kanjars.

Posted 2 years ago on 15 Mar 2010 3:38 #
hariskhan
member

Assalam-o-Alaikum-Warahmat-ULLAH ALL,

So who's making our lives, the lives of common man of Pakistan, worse ?

Posted 2 years ago on 15 Mar 2010 4:16 #
sasherwani
Members

@ Haris,

Answer: The corrupt government and the Jamati-supported Talibans.

Posted 2 years ago on 15 Mar 2010 5:08 #
choosy
Member

Govts jub tak IMPORTED Finance Ministers pe chalti rahein gi aur IMF ki banai houe Policy apnaien gi tou economy dobti naaoo hi rahay gi...

Shoukaton se jaan churaayin.
Pakistan Desi Finance Minister layein .

Posted 2 years ago on 15 Mar 2010 5:12 #
hariskhan
member

Assalam-o-Alaikum-Warahmat-ULLAH ALL,

I posted a thread (called 'Mass Media content from JI') in which I posted videos. In these videos Munawwar Hassan told specific measures which current Govt. needs to take in order to not require taking debt money from IMF or USA.

But Admin hid my thread because 2 people cried Munawwar Hassan is a terrorist.

This is an age old propaganda by people, who want to stop people in general from getting awareness.

These videos are available in this post on another thread.

Posted 2 years ago on 15 Mar 2010 5:43 #
RajputPuttar
Member

Since when Munawar Hassan has become economist ???

Harr uss cheez mein taang urrani haai jiss kaa patta nahi.

Posted 2 years ago on 15 Mar 2010 9:40 #
RajputPuttar
Member

There is a very old saying

"Capital is most timid thing"

Just look at law and order situation , and tell that who would like to invest in Pakistan ?

And especially in the presence of very stable & multiple times large markets next doors (China & India). Both these markets have an expanding middle class , which is capable & fond of spedning to make these even attractive markets.

We need to be realistic before starting blame game.

I put two specific examples of wheat & sugar but nobdy has got any answer to that .

Posted 2 years ago on 15 Mar 2010 9:43 #