ASSIGNMENT

NAME: Khadija KHAN GHORI

COURSE: MACROECONOMIC
DATE: 25-May-22

CPI YEARLY ANALYSIS.

The inflation rate increased compared to the previous year at the national level which is 13.37%,
in the urban area, it is 12.23% and in the rural area, it is 15.09%.

Thus, in the rural area, the inflation rate is higher than the national level. but in the case of urban
areas, it is less than the national level.

From the above data, we can estimate that at the national level the cost of food and non-alcoholic
beverages and transport increased by the highest percentage. In the case of urban and rural areas,
the situation was the same.

Food and non-alcoholic beverage items increased the most. The most important thing was the
prices of all items increased the most. the most important thing was prices of all items increased
most in the current period as compared to the previous year.

OVERALL IMPACT: -

When inflation increases, the cost-of-living increases because the purchasing power of money
falls or we can say that the real income falls. So, due to falling real income, the spending
capacity of people falls, and people spend less which is going to negatively affect the overall
standard of living of people. Here the standard of living or lifestyle of rural areas will be most
affected because here income is low, but inflation increased the most as compared to urban and
national levels. There could be three reasons behind this fall such as poor investment, negligence
by the public sector, famines, etc. This affects the supply of products, thus causing inflation
 
IMPACT OF PEOPLE'S LIFESTYLE IN URBAN AND RURAL
FOOD AND NON-ALCOHOLIC BEVERAGES. OR NON- PERISHABLE FOOD ITEMS
AND PERISHABLE FOOD ITEMS
The inflation rate for April 2022, registered an increase of 24.17percent mainly due to the lag
effect of price increase in prices of food commodities in the previous year month of April 2021.
The overall impact of food and non-alcoholic beverage prices increased in April 2022 by
175.41percent.
The increase in food prices harms people and the country's economy because households make it
more difficult to them to afford basic food. On the other side rising in food, prices are the most

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effective for is poor because they are unemployed and are unable to purchase a basic food
bucket.
ALCOHOLIC BEVERAGES, TOBACCO
Rising prices increase of alcoholic beverages and tobacco is a positive impact on people of
people because prices increase for alcoholic beverages lead to reduce alcohol consumption.
CLOTHING AND FOOTWEAR
As we compare the inflation rate of last year's April 2021 to April 2022 the difference is 15.36%
Pakistan's import of used clothing has nearly doubled this year as more people flock to the
market selling secondhand clothes due to rising inflation and poverty. The use and the import of
second-hand clothes are rising due to high inflation.
Average prices for the clothing and footwear group increased by 10.18% in April 2022.

HOUSING, WATER, ELEC, GAS, AND OTHER FUELS

The inflation rate for the housing, water, electricity, gas, and fuel group — having one-fourth
weight in the basket — rose by 15.53% (year-on-year) in the last month.
Households are facing a steep increase in their energy prices due to supply and demand in the
global wholesale market. This has driven up the amount providers pay for gas and electricity -
and that cost is now being passed onto the consumer.
The inflationary impact of fuel price increases. Price increases reduce the purchasing power of
money which in turn harms consumers' welfare.
HEALTH:
The increase in health care prices harms people and the country's economy because households
make it more difficult to them to afford expensive medicine. On the other side rising in medicine
and hospital fees, prices are the most effective for is poor because they are unemployed and are
unable to purchase a basic food bucket.
Even low financial barriers can have a significant impact on low-income people's access to
medicines and reduce the effectiveness of treatment. Not being able to afford prescription
medicines may impact negatively on people's health directly by preventing access to medicines,
by reducing expenditure on other items need for health.
TRANSPORT:
The increase in the cost of transport will have a negative effect on both rural and urban people's
lifestyles. Rural people will be affected by the increase in the cost of transport because they are
less likely to be able to afford it. Rural people are often poor, which means that they can't afford
to pay as much for their transportation needs as urban people do.

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Urban areas tend to have more public transportation options than rural areas do, but those options
can still become expensive when there is an increased demand for them or if there are fewer
resources available for providing them at an affordable price point.

EDUCATION:
The cost of education has been on the rise in recent years and this trend is expected to continue.
This will have a direct impact on people's lifestyles.
For rural people, the increased cost of education may mean that they must send their children
to school less often, or that they will have to find cheaper ways to educate their children. In
addition, rural students often do not have the same access to resources as their urban
counterparts. As a result, rural students may be forced to drop out of high school to take jobs
and support themselves and their families.
For urban people, the increased cost of education may mean that they will have to send their
children to private schools, or that they will have to pay for their children's education themselves.
Urban students may not be as affected by the rising costs education. This is because they often
have better access to resources, such as private classes, that can help them succeed in school. In
addition, many urban children can work part-time jobs after school to earn money for their own
expenses.
The increased cost of education will have a greater effect on urban people's lifestyles than on
rural people's lifestyles.

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