Economic jargon can often be confusing, especially when politicians try to simplify statistics to create a misleading narrative. In Pakistan, the recent average monthly inflation rate for September was announced as a 44-month low, leading to claims of lower prices and improved living conditions.

However, a closer look reveals a different story. The average monthly inflation rate in September was 6.9%, the lowest since January 2021. The government used this data to support their claims of successful economic policies.

Former finance minister Miftah Ismail cautioned against celebrating too soon, highlighting that the inflation rate decrease was primarily due to external factors like falling international commodity prices. He emphasized that while the inflation rate has slowed, it does not necessarily mean a decrease in prices.

Experts like Dr Abid Suleri and Dr Ashfaque H. Khan also shed light on the technicalities of inflation calculations, explaining that a decline in inflation rate does not equate to a drop in commodity prices.

With rising production costs, fluctuating energy prices, and other factors at play, the real impact of inflation on the average consumer remains complex and multifaceted.

Published in Dawn, October 13th, 2024