Govt’s inflation narrative challenged as food essentials receive price hike

KARACHI: Despite the government’s claims of a downward inflationary trend, essential kitchen and daily life food items like flour, ghee, and cooking oil continue to receive price hikes.

Retailers report that branded 5-kg and 10-kg fine flour bags have increased by Rs50 and Rs100, respectively. This means consumers are now paying Rs630-650 for a 5-kg bag, up from Rs570-600 last week, and Rs1,200-1,300 for a 10-kg bag, up from Rs1,100-1,200.

The price surge isn’t limited to fine flour; other varieties like No. 2.5, fine, and super fine flour have also risen by an average of Rs10 per kg. Millers attribute this increase to the rising cost of wheat, with the 100 kg wheat bag rate in the open market jumping from Rs 7,700 to Rs 8,200.

Ghee and cooking oil prices have also taken a hit, rising by Rs40 per litre/kg due to a $200 surge in global palm oil rates, now standing at $1,100 per tonne.

According to Pakistan Vanaspati Manufacturers Association Chairman Sheikh Umer Rehan, the government’s customs duty on palm oil and palm olein imports adds to the burden, totaling Rs9,500 per tonne. This translates to a tax incidence of Rs100 per kg/litre, with Rs60 being the general sales tax.