Pakistan’s Bureau of Statistics has reported a significant rise in monthly inflation, which surged to 31.6% in February compared to the previous year. The Consumer Price Index (CPI) tracks a basket of products, and prices for these goods rose at a historic rate in February, fueled mainly by food and transport costs. This rise in inflation has led to concerns that families may have to make difficult choices and sacrifices due to the high cost of living. Pakistan’s Dawn newspaper reported on this development.
This marks the highest annual rate since available data, i.e. July 1965, according to research firm Arif Habib Ltd which also expected that the inflation is set to rise even further in the coming months. Last month inflation surpassed 30% after being above 20% for eight months from June to January. Inflation was 12.2% in February last year, the report said.
With this, costs in four categories- transport, food and non-alcoholic beverages, alcoholic beverages and tobacco, and recreation and culture- jumped by around 50 per cent.
In February, prices rose 4.3 per cent compared to January, the highest rate since October’s 4.7 per cent. Meanwhile, Pakistan rupee plunged by nearly PKR19 against the US dollar ahead of the central bank’s monetary policy review amid concerns over a stalled International Monetary Fund (IMF) deal.
Pakistan has been undertaking strict austerity measures as it thrashes out a deal with the IMF to secure more than USD 1 billion in funding.
Following a historic decline in the Pakistani rupee against US dollar, the per tola gold price in Pakistan surged by a whopping 4.77%, Geo News reported quoting All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) which said that the price of gold (24 carats) surged by ₹9,400 per tola and ₹8,058 per 10 grams to settle at ₹206,500 and ₹177,040, respectively.
