As a result of the country’s high gasoline and electricity prices, Pakistan inflation rate increased to 31.4% year over year in September from 27.4% in August. According to figures released Monday by the Pakistan Bureau of Statistics (PBS).
The South Asian country, governed by a caretaker administration after the International Monetary Fund approved a $3 billion loan in July, confronts a difficult job in recovering economically.
The Washington-based lender’s loan helped the country avoid a sovereign default, but the loan terms have made it challenging for the government to control inflation.
According to PBS statistics, the Pakistan inflation rate increased by 2% in September instead of 1.7% in August as the Fuel prices in Pakistan increased.
Thanks to IMF measures, which include eliminating subsidies and relaxing import restrictions, the annual inflation rate has reached a record high of 38% as of May, reported by The News International.
The benchmark interest rates have also increased to their highest level at 22%. At the same time, the rupee has fallen to an all-time low against the dollar before rebounding due to a crackdown on illicit currency smugglers. The rupee touched an all-time low against the dollar in August.
The Ministry of Finance stated last week in its monthly report that it expects the Pakistan inflation rate to stay high in the upcoming month, averaging around 29-31%, due to an increase in the cost of petrol and electricity.
However, according to the Ministry of Finance, inflation was anticipated to moderate, notably from the start of the current fiscal year’s second half, which begins on January 1.
Analysts predict that inflation has peaked and will begin to decline shortly.
The interim administration also decreased the prices of petroleum goods, the first decrease since mid-July.
Following the crackdown on illicit FX transactions, the Ministry of Finance noted improvements in the exchange rate and global petroleum product prices. Get more Trending News and stay updated with all trends.