Inflation hits Peshawar households hard, says Institute of Regional Studies survey

PESHAWAR: A survey by the Institute of Regional Studies reveals that the majority of low-income households in Peshawar are grappling with debt due to rising inflation. An overwhelming 89% of families have resorted to borrowing money to manage their daily expenses, according to the survey. Dr Mohammad Iqbal Khalil, the chairman of IRS, unveiled the report at a press conference at Peshawar Press Club on Wednesday.

The findings, based on data collected from 462 households in Peshawar, consultations with various stakeholders, and focus group discussions, highlight how inflation has disproportionately impacted households in the city.

Dr Khalil noted that while inflation is a nationwide concern, Peshawar households have been particularly hard hit. The survey indicated that prices of essential commodities and services have surged by 35 to 40%, leaving 95.1% of households struggling to repay their loans. Notably, 48.7% of households in low-income areas reported severe inflation, with 67.3% of households revealing that their expenditures have increased more sharply than their incomes.

The report also highlighted that 93% of households are concerned about higher costs of electricity, gas, and fuel, while 86.4% faced increased food expenditures. Rising prices have compelled many families to opt for cheaper food items. Healthcare costs have emerged as a significant worry, with 79.4% of households stating they cannot afford medical treatment expenses. Education was also affected, with 59.1% of households delaying school fee payments and 19.2% switching their children to more affordable institutions.

Dr Khalil emphasized that the survey findings underscore how inflation has significantly increased financial pressures on middle and low-income households in Peshawar. The escalating costs of food, healthcare, education, energy, and transportation have placed additional strain on household budgets.