Cost of Living

The official consumer price index indicates an annual rate of inflation in excess of 15%. Ordinary people believe that the official price index probably understates inflation, and they are probably right. But for fixed income earners, especially for the poor, whether the rate of inflation is a few percentage points above or below the reported rate offers no consolation.

This government, like most of its predecessors when placed with high inflation, is making vain attempts to “control” prices. Budget shops have been started but people know that they are mainly for propaganda purposes. A few shops in urban areas subsidized by the tax payer probably would help a few thousand middle class people but certainly would not check the escalating cost of living.
In the last few days the government has embarked on price control. A generation has passed since we last had, in the 1970s, extensive price control. Those who experienced that period would be aware of the disastrous consequences. Politicians who try to defy market forces invariably come a cropper.

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