Pakistan: Millers again increase flour price
Sep 09, 2022
Islamabad [Pakistan], September 9 : Amid the increasing inflation, the millers in Pakistan have yet again increased the prices of flour by PKR 7 and PKR 10 in fine and super fine flour (maida).
After the hike, the new flour rate no.2.5 has been fixed at PKR 106 per kg while fine and super fine flour are now at PKR 114, Dawn reported citing a local miller.
The miller added that the new 10 kg flour bag rate has been increased to PKR 1,065 from PKR 995.
Meanwhile, Karachi Wholesalers Grocers Group (KWGA) Rauf Ibrahim said that the wheat rate has also been increased from PKR 8500 to PKR 9,200 per 100 kg bag, reported Dawn.
Last week, the Pakistan Bureau of Statistics (PBS) stated that the inflation measured by the Sensitive Price Index (SPI) rose steeply in the previous week climbing to a record 45.5 per cent year-on-year in September, the highest level in a decade.
PBS stated that the SPI-based inflation rate jumped to 1.31 per cent during the previous week compared to last week, due to a surge in prices of vegetables, as the country faces the brunt of the catastrophic floods which have affected over 33 million lives, reported Geo news.
It was also the third consecutive week that the inflation rate constantly increased, largely due to supply chain disruption amid floods that have sent the price of essential goods skyrocketing.
The latest data showed that the average prices of 31 items essential items, onions, tomatoes, eggs and other items rose during the outgoing week. Prices of three items, including vegetable ghee, have declined. Meanwhile, the rates for 17 essential goods remained unchanged, reported Geo news.
Meanwhile, PM Shehbaz Sharif's coalition government, which took over in April 2022, is grappling with multiple political and economic crises. Its current account deficit has surged to USD 17.4 billion or 4.6 per cent the size of the economy during the last fiscal year on the rising trade deficit.
A surging current account deficit amid depleting dollar inflows from multilateral and bilateral lenders, and shrinking foreign investment have brought the foreign exchange reserves and rupee under enormous pressure over the last several months.
It has stoked rapid inflation, forced the State Bank to boost borrowing costs to a multiyear high and eroded investor confidence in the economy.
