The escalating inflation has resulted in about 40 percent decline in the Eid shopping as compared to last year mainly because of the unprecedented price hike of garments, shoes, cosmetics and other items. According to a survey conducted by Business Recorder, the prices of garments have been increased by about 25 percent, shoes 35 percent, and cosmetics and jewellery moved up by 10 to 15 percent.
A shopkeeper-Naveed Aslam at the Anarkali Bazaar said the number of customers is considerably low as compared to last year. During last week prior to Eid, we used to record average goods' sale amounting to Rs 50,000 daily in past while the customers number at this festival is not encouraging this time, he added.
A salesman at a shoe store told this scribe the prices of lady shoes have been increased by 20 percent while the prices of famous brands of gents shoes also gone up by 300 to 350 per pair. Similarly, the locally manufactured children shoes' prices have also been increased by Rs 100 per pair.
On average, the ladies ready-made garments' prices have also moved up from Rs 550 of the last year to Rs 750 while the unstitched suit piece has been increased from Rs 500 to Rs 800. Likewise, the cosmetics prices have also registered significant increase as compared to last year.
While justifying the prices of every item, the shopkeepers said that the rising oil prices left negative impact on every sector. However, they were of the view that the impact of falling oil prices would start soon in the country. The rising oil prices had pushed up the cost of production while transportation, labour wages and other increase in other utilities tariffs were also the main reason of the price hike.
A customer Kamran, who was buying garments at a branded shop, said that things were more expensive while there was no change in our income and we were constraint to adjust our shopping accordingly.
Another shopkeeper complained about the heavy load shedding that badly hit the manufacturing activity while those who used diesel generators had to bear additional cost to make their products more expensive. He also said the mark up rate has also been increased to unaffordable level which is also one of the major cause of price hike. He also pointed out that with the increase in prices, the shopkeeper profit margin has been squeezed.
He said the consumers' purchasing power has been reduced because of the high price because when the inflation crosses reasonable limits, it puts negative effects on consumers, businesses and the economy because it reduces the value of money. Price hike also discourages savings and investment; thus, the government should take urgent remedial measures to arrest the rising trend of inflation as well as downward slide of rupee to ease pressure on the economy.