The fiscal year 2024-25 has seen an unprecedented rise in the prices of building materials, food, and essential goods, primarily driven by increased taxes. The surge in material and labor costs has pushed up the price of a new 5-marla house by Rs1 to 1.5 million.
Food items have experienced significant price hikes. Milk, for instance, was priced at Rs200 per kg in July 2024 and has now increased to Rs220 per kg. Other items like butter, chicken, and eggs have similarly seen price jumps. For example, chicken prices have risen from Rs300 per kg to Rs415 per kg, and eggs from Rs240 per dozen to Rs315 per dozen.
The cost of essential food staples has also escalated, with rice prices climbing from Rs300 per kg to Rs400, while lentils such as daal gram, daal mash, and daal moong have also risen significantly. Items like sugar, flour, and ghee have similarly increased, with sugar now selling at Rs190 per kg, compared to Rs150 at the beginning of the fiscal year.
A range of fruits and vegetables has also seen sharp increases. Onions have gone up from Rs50 to Rs60 per kg, while tomatoes have seen a jump from Rs50 to Rs80 per kg. Fruits like apples and guavas are now priced higher, with apples increasing from Rs200 per kg to Rs300-350 per kg, and guavas from Rs150 to Rs250-300 per kg.
On July 1, 2024, a kilogram of iron bars cost Rs220, but it now stands at Rs260. Similarly, cement prices have climbed from Rs1,150 per bag to Rs1,450, while the cost of a gravel trolley has increased from Rs11,500 to Rs15,000, and sand prices have risen from Rs9,000 to Rs11,000 per trolley.
As the fiscal year ends, anticipation of the upcoming 2025-26 budget looms large, with an expected price hike of 20% to 40% on many goods due to new taxes. This has already led to supply shortages in the market, with several items, including cigarettes, being sold illegally on the black market.
In the past three weeks, national and international companies have suspended the supply of products in preparation for the budget, with new prices to be set once the general sales tax and other taxes come into effect.Â
Despite the price hikes, carbonated drinks have seen a rare price reduction, with bottles now selling for Rs200, down from Rs270 in July 2024. However, analysts warn that a new wave of inflation is likely to follow once the new budget is announced.
