#Agriculture is pivotal to #Pakistan’s economy, contributing 23 per cent to the #GDP & employing 37.4pc of the labour force. With 70pc of the country’s exports directly or indirectly linked to agriculture, disruptions in this sector can have profound #economic impacts. Recent #protests by #farmers, sparked by governmental policies & market conditions, have thrown the sector into #turmoil, exacerbating the ongoing challenges of #inflation & low #ForeignReserves.
An inflationary spiral based on expectations. It is a very different one from a deflationary one.
In the case of supply chain disruption (think floods and drought) it's a supply shock and at best businesses have to scramble to adapt (invest etc) to get around the problem. But hammering COL demand is perverse.
In all cases, messing around with interest rates is largely an exercise in futility.
Britische Inflation geht im April deutlich zurück auf 2,3 Prozent
Die Inflation in Großbritannien ist weiter abgesunken und hat den tiefsten Stand seit fast drei Jahren erreicht. Gedrückt wurde sie durch fallende Gas- und Strompreise. Eine Zinssenkung der Bank of England rückt in greifbare Nähe.
Now the Q. is whether the BoE will make good on its talk of a shift down in interest rates (but don't expect a major reduction), or whether oddly, the headline rate doesn't reflect what they see as 'real' inflation...
If the latter, then, they'll be some crocodile tears & an assurance that of course rates will be coming down soon.... just (again) not quite yet.
Watch the sado-monetarists shift the goalposts (again).
If you want to see a duopoly at work, Mastercard & Visa (who control 95% of all debit/credit card payments in the UK), have managed to raise their fees in real terms by over 30% in the last five years with, as the Payment Systems Regulator drily puts it. 'little evidence that the quality of service has improved at the same rate'!
Yup, that would be the sort of greedfaltion that we need to stamp on, not workers trying to regain their living standards (real pay levels).