The consumer price index (CPI), which measures inflation in Pakistan, shattered all prior records and soared to 31.5% in February as a result of sharp increases in the cost of transportation and food.
The Pakistan Bureau of Statistics (PBS) released new inflation data on Wednesday, which has increased the likelihood that interest rates will climb further at the March 2 meeting of the monetary policy committee (MPC).
The annual inflation rate soared to 31.5% in February, the highest level seen since figures were first made available in July 1965. When it was last measured, in April 1975, the inflation rate was just over 29%. Over January, the monthly inflation rate increased by 4.3% in February.
The government will need to reevaluate its plan to release the crucial $1.1 loan tranche from the International Monetary Fund, according to the inflation reading. The public is experiencing a series of shocks as a result of the government’s inability to make up lost ground with the IMF.
The core inflation rate, which is determined after subtracting the erratic energy and food prices, also skyrocketed to 17.1% in urban areas and 21.5% in rural regions last month, indicating that price increase is accelerating across the majority of good and service categories.
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