INFLATION is at its peak all over the world and there are different reasons for it.

In the case of Pakistan, an excess of money supply growth has basically enhanced inflation.

According to our economic ‘Survey’, the CPI dropped to 19.10 per cent in March 2009 as compared to 25 per cent in August 2008.

The main reason for inflation here is the increase in prices of everyday-use items such as wheat, sugar and ghee. The government has totally failed to control the prices of these items.

Another reason is the hike in petrol prices. When the price of petrol is increased, it affects prices of complementary goods too, such as transportation fares etc.

Inflation is the root cause for a host of problems in Pakistan. The government truly needs to keep a check on it.

Lubna Ali

Karachi

Published in Dawn, October 25th, 2014