According to statistics released on Saturday by the Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI), which measures monthly inflation in Pakistan, hit a record high of 35.37 percent year over year (YoY) in March.
This marks the highest CPI increase on record since July 1965, according to the investment firm Arif Habib Corporation.
Weekly inflation remains above 45pc
On the other hand, according to statistics collected by the Pakistan Bureau of Statistics (PBS), short-term inflation based on the Sensitive Price Index (SPI) increased to 45.36 percent on an annualized basis during the seven days ending March 30.
Index-wise increase in inflation YoY:
- Transport: 54.94pc
- Alcoholic beverages and tobacco: 47.15pc
- Recreation and culture: 50.59pc
- Perishable food items: 51.81pc
- Non-perishable food items: 46.44pc
- Restaurants and hotels: 38.49pc
- Furnishing and household equipment maintenance: 38.99pc
- Miscellaneous goods and services: 34.43pc
- Health: 18.46pc
- Clothing and footwear: 21.93pc
- Housing and utilities: 17.49pc
- Education: 7.18pc
- Communication: 6.64pc
In its Monthly Economic Update & Outlook published on Friday, the finance ministry projected that inflation would increase further as a result of previous policy decisions to increase energy and fuel costs, the central bank’s policy rate, and the depreciation of the rupee to obtain IMF funding.
The Economic Adviser’s Wing of the Finance Ministry acknowledged the failure of the authorities to control the inflationary surge and the failure of their policy measures.
“Despite SBP’s contractionary monetary policy, the inflationary expectations are not settling down,” it said and also tried to attribute the challenge to Ramazan-oriented demand pressures.
It warned that bulk buying during Ramazan might cause a demand-supply gap and result in the escalation of essential items’ prices, although the government was alert to the situation and had already taken on board all provincial governments to ensure a smooth supply of essential items.
