Pakistan’s monthly inflation soared to a nearly all-time high level of 35.4% as measured by Pakistan Bureau of Statistics (PBS) data Saturday.
According to data released by PBS, prices in urban and rural areas increased 32.97pc and 38.88pc year-on-year, respectively. Analysts believe Pakistan is now heading towards hyperinflation — a situation when prices are out of control and in the territory of a 50% surge.
There was a huge increase in the food inflation rate, mostly because of the disruption of supply chains and weak checks.
Food inflation rose steeply to 50.2% in rural areas and it also significantly increased to 47.1% in cities last month, the PBS data showed. The inflation rate hit the roof in rural areas where it was recorded at 38.9%, while it jumped to 33% in the cities.
Food inflation rose steeply to 50.2% in rural areas and it also significantly increased to 47.1% in cities last month, the PBS data showed.
The federal and provincial governments are even unable to ensure steady essential food supplies.
The prices raises at a time when the economy has slowed down significantly and poverty, as well as unemployment, are spiking.
The prices of a majority of consumer goods remained out of the reach of the people, and a major surge was witnessed in rural areas where income levels were already low.
Remember that the increase in Inflation is due to IMF’s Tough conditions imposed in order to avail $1.1 billion IMF tranche under the Extended Fund Facility. Federal Government approved 170 billion in taxes to boost revenue generation in line with the preconditions of the IMF.
Prime Minister Shehbaz Sharif warned that inflation would further trigger after the approval of the IMF program.