Rising Costs Hit Daily Life
The recent floods across Pakistan, particularly the severe flooding in the Chenab River that triggered a widespread alert in Punjab, are beginning to leave a visible impact on everyday life, with inflation rising sharply and families struggling to manage household budgets.
According to the latest report from the Pakistan Bureau of Statistics (PBS), the prices of 23 essential items increased in just one week, intensifying an already severe cost-of-living crisis.
The inflationary wave is putting particular pressure on low- and middle-income groups, who spend most of their income on food and fuel. Analysts warn that the combined effect of damaged crops, disrupted transport routes, and higher import costs could further worsen the situation in the coming months.
Wheat Flour Prices Soar by 25%
The steepest rise was recorded in wheat flour, the staple food for most households. The PBS report noted that the price of a 20-kilogram bag increased by 465 Pakistani rupees, reaching as high as 2,300 rupees. In some urban centers, flour was selling for 2,500 rupees, with the national average price standing at 2,294 rupees.
This surge is particularly damaging for vulnerable households, many of whom already spend half of their monthly income on basic groceries. Economists stress that wheat shortages are linked to both crop destruction in flood-hit provinces and transport bottlenecks that delay distribution.
Vegetables and Daily Essentials Affected
Vegetables, often the first to reflect supply disruptions, have seen drastic price hikes. Tomato prices rose sharply, reaching an average of 205 rupees per kilogram, while in some markets they sold for 300 rupees. Onions also climbed by 8.57%, pushing the average price above 80 rupees per kilogram.
The PBS report further highlighted increases in the prices of garlic, potatoes, lentils (moong), bread, liquefied petroleum gas (LPG), and even basic clothing. These increases are compounding the burden on families who are already paying more for transport and utilities.
Annual Inflation Reaches 5.07%
In just one week, inflation rose by 1.29%. On an annual basis, the rate now stands at 5.07%, according to official data. Experts caution that this figure could climb higher if floodwaters continue to disrupt harvests, particularly of rice, cotton, and vegetables. The damage to Pakistan’s agricultural sector is expected to be significant, given that farming accounts for nearly 20% of the country’s GDP and employs over 35% of the labour force.
Limited Relief: Some Prices Stable or Falling
Not all items saw an increase. Prices of 24 essential commodities remained unchanged during the week under review. Meanwhile, four items, including bananas, sugar, and diesel, recorded slight decreases. However, analysts say these reductions are not enough to ease the broader inflationary pressure faced by consumers.
Broader Economic Challenges
Pakistan was already facing double-digit inflation before the floods, driven by global commodity shocks, high fuel prices, and a weakened currency. Food insecurity has been rising steadily, and the floods have only deepened the crisis. The World Bank has previously estimated that nearly 40% of Pakistan’s population is vulnerable to falling below the poverty line when hit by such shocks.
With millions displaced and infrastructure damaged, recovery will take time. If agricultural supply chains are not restored quickly, inflation could accelerate further, creating both economic and social instability.
Outlook
For now, the government faces a dual challenge: managing emergency relief for flood-affected families while trying to stabilise food and fuel supplies nationwide. Economists suggest targeted subsidies and imports of key food staples may be necessary to prevent shortages.
As the inflation rate climbs and essential goods become increasingly unaffordable, the economic aftershocks of the floods are likely to linger well beyond the immediate disaster.
