Pak: Peshawar's dairy price hike raises concerns, shopkeepers set own prices amid administration failures

Peshawar [Pakistan], September 9 : The Peshawar district administration in Pakistan's Khyber Pakhtunkhwa has recently implemented a significant price increase for essential dairy products, Samaa TV reported.
The price of milk has surged from Pakistani currency (PKR) 180 to PKR 240 per litre. Yoghurt prices have also risen, with standard yoghurt now costing PKR 220 per kilogram, up by PKR 30, and higher-quality yoghurt priced at PKR 260 per kilogram, reflecting a PKR 70 increase.
The failure to enforce official pricing has led shopkeepers to set their own prices, raising questions about the district administration's effectiveness.
In Pakistan, the inflation of food prices has created substantial economic strain for many households.
The inflation rate for dairy products, according to the Pakistan Bureau of Statistics (PBS), has been significantly higher than the general inflation rate in recent years.
As of 2024, dairy product inflation is reported to be between 20-30 per cent, far exceeding the overall consumer price index (CPI) inflation.
News sources such as Dawn and The Express Tribune frequently highlight the challenges faced by the dairy sector, including rising input costs and supply chain disruptions, which have driven up prices.
The depreciation of the PKR has further exacerbated the situation by increasing the cost of imported goods, thereby driving up domestic food prices.
The rising cost of food has become a critical issue in Pakistan, impacting daily life and leading to widespread public discontent.
This has manifested in numerous protests across the country, with citizens calling for government intervention and more effective measures to control prices. The food price crisis, driven by economic instability, inflation, and supply chain issues, has significantly affected low- and middle-income families.
Pakistan has been grappling with severe economic challenges, with a significant rise in poverty and food prices exacerbating the situation.
According to the World Bank, the country has seen a marked increase in poverty rates, driven by a combination of inflation, economic mismanagement, and external debt pressures (World Bank, 2023).
Food prices, in particular, have surged due to supply chain disruptions, adverse weather conditions affecting agricultural output, and fluctuating global commodity prices.
The Pakistan Bureau of Statistics reported in early 2024 that the Consumer Price Index (CPI) for food items had risen sharply, placing an additional burden on low-income households.
This inflationary pressure has eroded purchasing power, pushing many families deeper into poverty and increasing their vulnerability to food insecurity.