Inflation rise figures in PPP Government from 2007 to 2011

These are the inflation figures someone posted on Facebook today. Some of these figures look exaggerated while the person who posted the chart claims that it represents the average prices throughout Pakistan.

I have just verified the prices of CNG at the end of 2007 & 2011 in Karachi to be Rs. 33.50 and Rs. 70 which is over a 100% increase.

The truth, however, is that inflation has increased at a far higher rate than the income of lower and middle class while the feudal landlords have made a lot this year due to better crops. This change in inflation also requires changes in Income Tax rates since the value of money has decreased.

Another bitter truth is that CNG is still not available readily at the inflated prices and many analysts attribute this gas shortage to profits of the oil companies rather than the real shortage. As a matter of fact, Government earned around Rs. 250 billion last year from GST and levy on petrol.

References:
http://archives.dawn.com/2008/03/21/ebr1.htm
http://www.dawn.com/2012/01/01/zardari-orders-review-on-petroleum-price-hike.html