Pakistanis’ misery worsens as inflation surges to record high

ISLAMABAD: Amid the unceasing political and economic turmoil in Pakistan that continues to make the lives of citizens miserable, monthly inflation has soared to an all-time high, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday, as per media reports.

Inflation, measured by the Consumer Price Index (CPI), clocked in at 36.4 per cent year-on-year in April. It was recorded at 35.4 per cent last month and 13.4 per cent in April 2022, Geo News reported.

This is the highest inflation ever, according to data available since 1965, Arif Habib Limited said.

Meanwhile, inflation rose by 2.4 per cent month-on-month, Geo News reported.

According to Bloomberg, Pakistan has the fastest rising prices in Asia, leaving behind even Sri Lanka where inflation was measured at 35.3 per cent in the previous month.

Sana Tawfiq, an economist at Arif Habib Limited, said the headline inflation was in line with expectations. The prices of wheat, vegetables and fruits drove up food inflation, she said.

Meanwhile, the month-on-month inflation was driven mainly by food, clothing, household equipment and recreation sub-indices. Housing was down due to a decline in electricity charges, she commented, Geo News reported.

The economist said that inflation is likely to remain elevated before receding in the second half of the current year with the high-base effect kicking in.

"The risks associated with overall inflation are: Weaker currency, international commodity prices and domestic food prices," she said.

Pakistan's inflation has been elevated for months as the economic crisis worsened, the rupee depreciated sharply while devastating floods during last year's monsoon season destroyed crops. The situation was exacerbated by the huge drop in the country's foreign exchange reserves that left it with less than a month's import cover, Geo News reported.