Recently, the Peshawar district administration in Pakistan's Khyber Pakhtunkhwa region has raised prices for essential dairy products, impacting the cost of milk and yogurt. The increased prices, with milk now priced at PKR 240 per litre and yogurt ranging from PKR 220 to PKR 260 per kilogram, have raised concerns about the effectiveness of the district administration in regulating pricing. This price surge has not only led to questions about official oversight but has also added to the economic burden faced by many households in the area.
The inflation of food prices in Pakistan has been a significant issue, with dairy product inflation outpacing the general inflation rate. The rise in food prices, including dairy products, has been a challenge for many families, exacerbating economic strain. The imbalance between the inflation rate for dairy products, reported to be between 20-30 per cent, and the overall consumer price index inflation has highlighted the economic challenges faced by the country.
Notably, factors such as rising input costs, supply chain disruptions, and the depreciation of the Pakistani currency have contributed to the surge in food prices, including essential dairy products. The impact of these price increases has been felt across the country, leading to public discontent and protests demanding government intervention and effective measures to address the rising cost of food. The situation has become critical, particularly for low- and middle-income families, who are disproportionately affected by the economic instability and inflation plaguing the country.
The World Bank has highlighted the economic challenges facing Pakistan, with a notable increase in poverty rates driven by a combination of inflation, economic mismanagement, and external debt pressures. The surge in food prices is attributed to various factors such as supply chain disruptions, adverse weather conditions affecting agricultural output, and fluctuating global commodity prices. This inflationary pressure on food items, as reported by the Pakistan Bureau of Statistics, has further deepened the vulnerability of low-income households to food insecurity and poverty, eroding their purchasing power and livelihoods.