ISLAMABAD: “Consumer price index (CPI) and sensitive prices index (SPI) based inflation rates computed by the Pakistan Bureau of Statistics (PBS) are understated to release a rate lower by about 2.4 percent”.
This was stated by former Finance Minister Dr Hafeez Pasha while talking to this correspondent on Tuesday.
According to the PBS, the CPI for February 2024 was 23.1 percent, which as per Dr Pasha is around 25.5 percent. SPI according to PBS was 32.89 percent year on year during the week ending 14th March which Dr Pasha calculated at 35.29.
Elaborating on his thesis Dr Pasha said that PBS SPI data released on 15th February 2024 showed an increase of over 1,100 percent in consumer gas prices but a week later the PBS noted only a 480 percent hike in consumer gas prices thereby showing over 100 percent reduction which indicates gross and not too well thought out data manipulation.
Dr Pasha further stated that while computing inflation figures the PBS considered the lowest quantile of gas and electricity tariff, while it should take the average quantile to show a more realistic picture.
Dr Pasha pointed out that construction costs, according to PBS data, witnessed an increase of 18-20 percent, while there was a rise of 5-6 percent in house rents. The two should be at par, he said adding that according to PBS data construction input costs increased by 15.03 percent, wages rose by 13.03 percent, and house rent by 7.7 percent.
Dr Pasha further contended that the prices prevalent in the suburbs of Karachi may not be comparable to those in the suburbs of Sargodha therefore a comparison as made by PBS is not appropriate.
Copyright Business Recorder, 2024
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