Pakistan inflation hits all-time high
Inflation in Pakistan skyrocketed to half a century's highest level of 31.5 percent, becoming the 17th most expensive country in the world.
Monthly inflation, measured by a basket of products called the Consumer Price Index (CPI), jumped to 31.6% in February year-on-year, the Pakistan Bureau of Statistics said on Wednesday.
It was the highest reading since 1973-74 when the CPI had been reported at 32.8%.
This was the highest annual rate since available data, i.e. July 1965, according to the research firm Arif Habib Ltd, and is also expected to rise even further in the coming months.
Inflation surpassed 30 percent previous month after having stayed above 20% for eight months from June to January. 'The 30 percent figure is where families will have to make choices and sacrifices,' analyst Torek Farhadi told that. Inflation was 12.2% in February 2022.
The Pakistan government is undertaking belt-tightening, aims to increase revenues through taxes, and has allowed the rupee to depreciate as it thrashes out a deal with the International Monetary Fund (IMF) to secure more than 1 billion US dollar in funding.
The rupee shed 1.73%, closing at 266.11 against the dollar on Wednesday. The rupee has depreciated nearly 15 percent since the start of the calendar year, adding to inflation.
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