Government data says inflation has dropped, but prices remain high. This article explains, in plain Urdu, the difference between inflation and the rate of inflation — and why the common man still feels the burden. We also suggest real reforms for public financial awareness.
The Big Confusion: Is Inflation Down or Not?
Everyday people across Pakistan are asking the same question:
“If inflation has gone down, why haven’t prices come down?”
The government and the State Bank of Pakistan say that inflation has reduced from 38% to just 1.5%. But for the common man, electricity bills, flour, milk, petrol, and medicines are still expensive – in fact, some things have gotten even costlier.
So, what’s the truth? Has inflation really decreased, or is it just a play of numbers?
Inflation vs. Rate of Inflation – Not the Same Thing!
Let’s explain this in very simple terms.
☕ The Cup of Tea Example:
- In 2023, a cup of tea cost Rs. 100.
- In 2024, the same cup cost Rs. 138. That’s a 38% increase — this is inflation.
Now in 2025, if the tea costs Rs. 140:
- Prices have still gone up, not down.
- But this time, it only increased by Rs. 2 — just 1.5% more than last year.
So yes, inflation rate has decreased from 38% to 1.5%,
BUT PRICES HAVE NOT COME DOWN — they’re still going up, just slower.
📌 Simple Table to Understand the Difference:
| Term | Meaning | Example |
|---|---|---|
| Inflation | Prices are increasing | Tea goes from Rs. 100 to Rs. 138 |
| Rate of Inflation | How fast prices are increasing | First it was a 38% jump, now it’s only 1.5% |
So when the government says “inflation is down”, they actually mean the rate of increase in prices is slower, not that prices have come down.
Why Are People Confused?
Because when people hear “inflation has come down”, they think:
“That means things must be cheaper now.”
But that’s not true. Prices are still high, and many are still increasing — only the speed of increase has slowed down.
It’s like this:
- A car was speeding at 120 km/h (that’s 38% inflation).
- Now it’s moving at 30 km/h (1.5% rate).
- But the car is still going forward — just slower.
That means: Prices are still rising. Inflation hasn’t ended.
Message to the Government and State Bank of Pakistan
- Stop Playing with Numbers
People don’t understand percentages, graphs, or complicated economic terms. Be honest with the public. Instead of saying “inflation is down,” say: “Prices are still high, but their rate of increase has slowed.” - Start a Financial Literacy Campaign
Launch a nationwide campaign to educate the public on basic economic terms like inflation, GDP, budget, interest rates, etc. Use:- TV and YouTube Ads (just like for dengue, polio, or elections)
- Daily News Segments with simple explanations
- Social Media Videos and Infographics
- School Curriculum to teach basic economics to kids
- Partner with Public & Private Media
Involve banks, NGOs, schools, and digital influencers to run an easy, understandable campaign for every household.
Final Words: Inflation Is Still Here – It’s Just Slower
As long as essentials like food, medicine, electricity, and fuel are expensive, inflation is still part of everyday life. Just because the rate is lower doesn’t mean the burden is gone.
The government and authorities must stop hiding behind numbers and start communicating clearly and honestly.
Let’s empower the people with knowledge, not confusion.
Rehan Hyder is a digital media expert, trainer, and public awareness campaigner, helping people understand how policies, economy, and digital platforms affect their lives. Email: mail@rehanhyder.com URL: www.rehanhyder.com