Low income groups continue bearing inflation brunt

The low income groups continue to bear the brunt of the inflationary pressure as SPI (Sensitive Price Indicator) for the week ending on May 6 depicted nearly 10 percent increase, as compared to the corresponding period of May 8, 2003.
The SPI of 53 items, prepared by the Federal Bureau of Statistics, showed that during the week from April 29 to May 6, 2004, the prices of essential items rose--compared to corresponding week of May 8, 2003--by 9.96 percent for all income groups.
But for income group up to Rs 3000, the surge was 10.7 percent; for income group from Rs 3000 to Rs 5000, the rise was 10.16 percent; and for income group between 5001 and Rs 12,000, it was 9.60 percent; and for those above Rs 12000 per month, it was 9.79 percent.
The weekly sensitive price index includes daily necessities, like wheat, rice, pulses, mutton, beef, chicken, vegetable ghee, cooking oil, spices, vegetables like potatoes, onions, tomatoes, cloth including coarse latha, lawn, voil printed, laundry items, diesel, petrol, tea, sugar, other edibles, LPG, firewood and electricity.
The SPI indicators of FBS also speak of telling increase of over one percent in one week (April 29 to May 6) as compared to the previous week (April 22 to 29). It varies from 1.26 percent to 1.47 percent for all income groups.
The SPI for week ended on April 29 was 116.15, which rose to 117.68.
The figures collected from 17 urban centres by the Bureau indicate rising trend during the week April 29 to May 6, as compared to the previous week ie April 22 to 29.
The items are soap, potatoes, eggs, banana, petrol, garlic, kerosene, wheat flour, wheat, diesel, gram, sugar, chicken, gur, curd, voil printed, vegetable ghee, milk fresh, and moong. But more significant was the increase in prices as compared to prices prevailing one year ago ie May 1 to 8, 2003.
The change is quite considerable in regard to bath soap (27 percent); potatoes (48.2 percent); petrol (22.4 pc); kerosene (21.2 pc); wheat (23.3 pc); diesel (20.3 pc); mutton (32.6 pc); beef (26,5 pc); wheat flour (24.6 pc); and rice Irri (16.5 pc).
Though the price of onion fell during the week, it was still 33.4 percent higher than in the corresponding week of last year.
Similarly, the FBS data show that there was no change in price of milk powder during the week. Still it is 12.5 pc dearer than last year. Other such items include coarse latha (10 pc); firewood (13.97 pc), and bread 11.2 pc.
The FBS weekly report also states that cement prices were over 16.2 pc higher than one year ago. With house rents spiralling up all over the country, education and medical care being costlier than ever before, the plight of the low income groups, being impoverished by the rising costs, deserves greater attention of the government.