Freight, fuel hikes squeeze consumers

KARACHI: Prices of essential items have shown a mixed trend as the Gulf war, which started on Feb 28, pushed up transportation costs following a surge in energy prices due to disruptions.

Since shipping companies have raised freight and war risk charges, the landed cost of imported finished goods and raw materials has skyrocketed.

A random market survey before and after the outbreak of the war in the Middle East, shows that vendors of beef, mutton and chicken jacked up prices before Ramazan and during the lead-up to Eid.

The current average rate of beef (with and without bones) is Rs1,000-1,500 per kg. Beef prices had seen a Rs100-Rs200 increase ahead of Eid. The rates for veal surged to Rs1,800 per kg from Rs1,600 during Ramazan.

War-driven costs push up wholesale prices, with retail impact looming; energy shock threatens inflation spike

War-driven costs push up wholesale prices, with retail impact looming; energy shock threatens inflation spike

Mutton prices have been hovering between Rs1,800 and Rs2,750 in various cities, showing no change since Feb 28.

Consumers expected a drop in beef and mutton prices because the war had stalled exports, but high domestic demand during Eid festivities kept meat prices out of reach for many. According to meat merchants, export shipments were being sent by air.

Chicken, another most sought-after Eid item, saw a jump to Rs360-Rs500 per kg from Rs300-420 two days before the war began on Feb 28.

As per the Sensitive Price Index (SPI), the prices of Masoor, Moong, Maash and gram pulses have stayed almost unchanged at Rs220-320, Rs340-Rs460, Rs400-540 and Rs210-340 per kg, respectively, since Feb 28.

Rauf Ibrahim, who heads the Karachi Wholesalers and Grocers Association (KWGA), said the Rs55 per litre........

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