Who Is Walking the Walk Amidst 13.8 Inflation?

The BNR is talking the talk of moderation; while NISR is posting such alarming piece of statistic—a 13.8% revised inflation. But who is walking the walk here?

NISR is just a messenger. Thanks for their recent revised reports which pointed out many of the measures such as consumer spending, producer prices, import prices and commodity prices, most of which—if not all—have a double digit annualised inflation today.

My one of many takeaways amongst NISR interesting prints here is that of 13.8% inflation on consumer goods. These are the types of goods, such as fresh and dry food, soft drinks, etc., that everyday consumers must have to survive.

To me, inflation rate is a lagging indicator because it shows what consumers have already paid or are currently paying on goods and services. Therefore, the answer is: us consumers are walking the walk.

On investor’s perspective, given such inflation, one must post a hell of a return on investments to break-even before taxes let alone make a profit. As a civil servant, one’s wage growth must match such inflation in order to keep up with consumers’ short-term and durable goods spending while maintaining other investable assets.

Is that simultaneously happening? I hardly think so. Yes, there many moving parts in macroeconomics, but a double digits inflation rate is a little out of hand, especially on consumer goods. And if not well handled, this piece of data can cause spillovers just like falling dominos. Somebody should be asking serious questions.

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