Page 44 - Issue-30-En

ELITE Vol.1, Issue 30, April 2021 Happy

Ramadan
So if we were to measure the CPI on a What might be the effects of the

monthly basis, the measurement during pandemic?
Ramadan will, normally, reveal inflation. This Ramadan and last year’s Ramadan
That’s why, according to the basic are a little special due to the pandemic:

definition of a CPI, the CPI cannot be No more outings allowed, family
considered a “normal” period reflecting an gatherings are supposed to decrease
actual inflation but a seasonal variation that and isolation is preferable so no more

requires adjustment (cannot be large gathering or evening Iftar meals
representative of the CPI in a certain …. This definitely should have an
country, because first, this is not a globally impact, and this is mainly what we’ll be

celebrated event since it’s a cultural and elaborating!, we want to study whether
religious occasion, second, this is a the previously mentioned factors that
general increase in the food prices only distinguish the CPI during Ramadan will

during this month, thus the government be amplified, moderated or unchanged
can’t act upon it and intervene with long with the advent of the pandemic…

lasting monetary policies to control inflation We may think that with less outings and
(It’s a temporary inflation that comes and gatherings, this will end up decreasing
goes with this month…) the CPI…
This increase in household expenditures is

mostly because the month of Ramadan is
usually considered a month of festivities, in

terms of food, family gatherings, outings,
the festivities lifestyle which all cause
fluctuations in the consumption habits of

the household… For example: During
Ramadan, people in general enjoy buying
mostly quantities that exceed what they

need (the effect of ‘’we’ll be hungry so we
need to break the fast with a proper meal’’,
or the fact that actually there’s a special

basket of products that’s especially
consumed in Ramadan and not all year
round (from the various drinks to the feasty

desserts…), also people loved to gather in
cafes, restaurants and markets, especially
after Al-Tarawih prayers and till Fajr

(Sunrise), and thus an increase in
consumption and expenditures…
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