Food is one of the most basic necessities of human beings. To manage bread and butter is the biggest challenge of masses especially in under developed countries. In Pakistan highest inflation rate 38.5% was recorded in year 2023 since the country got its independence.
However, food inflation significantly reduced in year 2024 to 2.46% which less than its neighboring county India where the food Inflation was recorded as 5.66% in the same year. This sharp decline in food Inflation can be attributed to the various factors such as import of wheat, bumper crop of local wheat, controlled dollar exchange rate which directly relates to import of essential food items such as tea, edible oil and spices. Food Inflation rates of some significant countries are:
- Argentina: 237%
- Turkey: 44.88%
- Nigeria: 37.52%
- Venezuela: 34.1%
- Egypt: 29.7%
- Lebanon: 24.51%
- Iran: 24.4%
- Bangladesh: 11.36%
- Russia: 9.7%
- Ukraine: 6.0%
- Mexico: 5.98%
- India: 5.66%
- South Africa: 4.7%
- Brazil: 4.59%
- Norway: 4.5%
- Poland: 4.1%
- Japan: 3.6%
- Australia: 3.3%
- El Salvador: 3.12%
- China: 2.8%
- Canada: 2.7%
- Spain: 2.5%
- Pakistan: 2.46%
- UAE: 2.46%
- United States: 2.1%
- Germany: 2.08%
- South Korea: 2.04%
- Ireland: 2.0%
- Sweden: 1.38%
- United Kingdom: 1.3%
- Italy: 1.1%
- Saudi Arabia: 0.92%
- Hungary: 0.6%
- France: 0.5%
In conclusion, the significant reduction in Pakistan’s food inflation to 2.46% in 2024 is a promising sign of economic stabilization, especially when compared to both regional and global figures. This sharp decline is largely attributed to strategic factors such as wheat imports, a successful local harvest, and the stabilization of the dollar exchange rate, which positively impacted the cost of essential imports.
As Pakistan continues to manage its economic challenges, the country’s ability to maintain lower inflation rates will be crucial for providing relief to its citizens and ensuring long-term growth.
Good article