INTERNATIONAL

Pakistan’s inflation rate reaches a record high of 37.97%

According to official figures released on Thursday, Pakistan’s annual inflation increased to a record 37.97 percent year-over-year in May.

Pakistan, which is now experiencing a severe political and economic crisis, is struggling to deal with a large external debt load, a depreciating local currency, and decreasing foreign exchange reserves.

The Consumer Price Index (CPI), a basket of goods and services that is broken down into 12 key components with varying weights, is used to monitor inflation.

The Bureau of Statistics, which keeps track of price increases, has shown that the categories of alcoholic drinks and cigarettes had the biggest year-over-year increases, at 123.96 percent, followed by leisure and culture at 72.17 percent, and transportation at 52.92 percent.

Cigarettes, potatoes, wheat flour, tea, wheat, eggs, and rice were the main products in the food category whose prices climbed the greatest in May compared to the previous year.

The non-food products with the largest price increases were textbooks, office supplies, motor fuels, laundry soaps, detergents, and matchboxes.

Previously, April’s rate of year-over-year inflation was 36.4 percent, which was the highest ever.

With the most recent CPI hike, average inflation in this fiscal year’s first 11 months (July to May) has increased to 29.16 percent from 11.29 percent the year before.

Since early this year, inflation has affected every family in Pakistan as a result of the government’s difficult budgetary adjustments to meet the International Monetary Fund’s (IMF) demands for the revival of a delayed USD 6.5 billion assistance package.

 

 

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