KARACHI – Inflation in Pakistan surged to its highest level in 50 years as citizens of the crisis-hit nation struggled to obtain basic necessities.
According to data released by the Pakistan Bureau of Statistics, the country’s inflation reached its highest level in a half-century as the Sharif-led administration made desperate moves like raising the cost of fuel and electricity while severely devaluing the local currency and imposing import restrictions, which made the already dire situation worse.
The South Asian country, which now ranks as the 17th most expensive in the world with over 31.5% inflation, is on the verge of hyperinflation.
The biggest increase in fuel prices has been in gas; however, after the floods and the war between Russia and Ukraine, food prices also increased significantly, making life even more difficult for the average person. The Consumer Price Index (CPI) rose 31.5% in February compared to the same month the previous year, which is the seventh-highest reading since 1973-1974.
The shocking statistics were released by the Pakistan Bureau of Statistics a day before an urgent meeting of the Monetary Policy Committee, which will take place today to raise interest rates in accordance with demands made by the IMF before the release of bailout funds.
The shocking statistics were released by the Pakistan Bureau of Statistics a day before an urgent meeting of the Monetary Policy Committee, which will take place today to raise interest rates in accordance with demands made by the IMF before the release of bailout funds.
Due to the devaluation of the currency, the increase in electricity and gas prices, and the imposition of additional taxes to comply with the IMF’s conditions, Pakistan’s inflation rate was likely to continue to be high.
The cost of rice, which is regarded as a staple food, increased by 78% last month. While ghee and cooking oil prices rose by about 51%, the price of pulses increased by over 60%. Transport group prices rose by more than 50%, and tobacco prices increased by a whopping 49%.
