The consumer price index (CPI) is the instrument to measure inflation. It is used to estimate the average variation in the prices of household products between two given periods, which ramps up and causes problems for citizens. According to the Pakistan Bureau of Statistics (PBS), the national CPI for February 2022 increased by 1.15 percent compared to January 2022. The urban CPI increased by 0.93 percent, while the rural CPI increased by 1.48 percent. The CPI measures the rate of inflation, which is one of the most serious threats to an economy’s health. In addition, the report expresses the CPI, specifically that inflation is rising.
The government is doing its best to provide excellent services, but according to the report, there are some critical issues that must be addressed. The sensitive price index (SPI) measures the change in the cost of necessities.
According to the World Bank, poverty in Pakistan has risen from 4.4 percent to 5.4 percent in 2020, with over two million people falling below the poverty line. The reason for this is the CPI, which is escalating at an alarming rate because no notice has been given to it.
Pakistan has excellent relations with its neighbors. It must eliminate all percent of inflation, rather than gradually increasing. If developed countries such as China and Russia stand with Pakistan to trade and collaborate, Pakistan should have advanced in the last 10 or 15 years. Despite the fact that CPI percentages are rising.
Simultaneously, the unemployment rate rises as the value of the rupee falls, and the government and private companies may be unable to hire workers due to an increase in the producer price index (PPI). The country’s economy is deteriorating as a result of the worsening situation.
The issue affects the entire country, not just one city. The government should take a stand on the issue of CPI, PPI, and SPI inflation so that people can continue to meet their basic needs by working. And it is evident in economics that the development of a country is dependent on the productivity of its citizens. That is the extent to which they are capable of working. And how do they express their productivity if there are no jobs? They are, however, productive. As a result, it is critical that the authorities address the escalation of the CPI.
Mudasir Karim
Turbat