KARACHI, Pakistan :Pakistan consumer prices, driven by food, rose a record 36.4 per cent in the year to April, the highest inflation rate in South Asia and up from March’s 35.4 per cent, the statistics bureau said on Tuesday.
Pakistan’s rural areas recorded food inflation of 40.2 per cent, the bureau told Reuters. Food inflation for both rural and urban areas reached 48.1 per cent, the highest since FY16 when the bureau started recording the categories separately.
“The higher reading was expected over the hyperinflation in the food segment,” said Amreen Soorani, head of research at JS Capital, a Karachi based investment company. “While the trend may continue for a couple of months more, the base effect is likely to kick in from June-2023, slowing the pace.”
Pakistan has been in economic turmoil for months with an acute balance of payments crisis while talks with the International Monetary Fund to secure $1.1 billion as part of a $6.5 billion bailout have not been successful.
The country has taken measures to try to secure the funding, including removing caps on the exchange rate, resulting in a depreciating currency, increasing taxes, removing subsidies and raising key interest rates to a record high of 21 per cent.
Prices rose 2.4 per cent in April from March, the bureau said in a press release.
Persistently high inflation has resulted in major lifestyle and consumption changes, with a greater number of people seeking help.
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