Inflation myths of Ramazan

There is a popular belief that inflation rises during Ramazan, with authorities solely fixated on stocking up and artificial price hikes. Prices tend to escalate during Ramazan, with a general surge of 31.5 per cent in recent months, and several food items experiencing up to a 60pc increase in prices from their pre-Ramazan levels. While stocking up may be a contributing factor towards higher prices, it does not play a pivotal role. There are structural inefficiencies in the retailers’ supply chain and a lack of regional trade in Pakistan, which causes a price hike. This phenomenon is simply an application of the law of demand and supply, which remains applicable during both Ramazan and Christmas, just as it does throughout the year. Only when the demand for a product exceeds its supply a disequilibrium arises, leading to fluctuations in price.