Inflation resulting from incompetent policies of government, SBP

The State Bank of Pakistan (SBP) has said that the recent wave of inflation has resulted from the incompetent policies of the government, Dunya News reported on Wednesday.A report published by the SBP has revealed that the international sugar price decreased from Rs. 50 per kg to Rs. 27 per kg in the first quarter of the current year but contrary to it the commodity price increased to 80 rupees per kg in the country. Similarly the wheat price in 2009 in the international market was 3 rupees less per kg than the local price of the commodity however the difference reached 12 rupees by the end of 2009. According to the bank the surge in the prices of pulses, grains, onions, fresh fruit, meat and rice is unreasonable and lacks rationale when their supply is far greater than their demand.