Islamabad, July 7, 2023 – Pakistan’s middle class is grappling with the impact of rising inflation, particularly the surge in prices of essential kitchen items, according to official data released by the Pakistan Bureau of Statistics (PBS) on Friday.
The PBS provided details of inflation based on the Sensitive Price Indicator (SPI) for the week ending July 6, 2023, revealing that the middle-income group has been disproportionately affected by inflation compared to other segments of the population.
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The data from the PBS indicates that inflation for the expenditure groups Q1 (up to Rs. 17,732) and Q2 (Rs. 17,733 – Rs. 22,888) increased by 28.92 percent and 29.23 percent, respectively, on a year-on-year (YoY) basis as of the week ending July 6, 2023.
The middle expenditure groups, Q3 (Rs. 22,889 – Rs. 29,517) and Q4 (Rs. 29,518 – Rs. 44,175), experienced even sharper inflation spikes of 30.53 percent and 30.25 percent, respectively.
In contrast, the highest expenditure group, Q5 (above Rs. 44,175), witnessed a 29.36 percent increase in inflation.
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When considering all expenditure groups combined, the overall inflation rate rose by 28.55 percent for the week ending July 6, 2022, on a YoY basis.
These figures indicate that Pakistan’s middle class is facing a significantly higher burden of inflation compared to other income groups, particularly when it comes to basic kitchen items.
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Rising inflation can have far-reaching consequences for the middle class, as it erodes their purchasing power and makes it increasingly difficult to meet their daily needs and maintain their standard of living.
The government is urged to address the issue of inflation promptly and take measures to mitigate its impact on the middle class, ensuring that essential commodities remain affordable and accessible to all segments of society.
Efforts to stabilize prices, improve supply chains, and implement targeted subsidies could alleviate the burden on the middle class and promote economic stability in the country.
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It is essential for policymakers to recognize the challenges faced by the middle class and work towards implementing effective strategies that can alleviate their financial strain and safeguard their quality of life.
