Highest in over 13 years, inflation in Pakistan rises to 21.32 pc

Islamabad [Pakistan], July 1 (ANI): Inflation in Pakistan increased to 21.32 per cent in the month of June, the highest in over 13 years, a media report said on Friday.
Pakistan’s Bureau of Statistics (PBS) stated that in May, the inflation rate as measured by the Consumer Price Index (CPI) was 13.76 per cent.
The inflation increased by 6.34 per cent month-on-month (MoM) and reached 21.32 per cent year-on-year (YoY) in June, the Dawn newspaper reported.
Earlier, the highest inflation stood at 23.3 per cent in December 2008.
The inflation rose by 19.84 per cent in urban areas and 23.55 per cent in rural areas, the PBS stated.
Double-digit inflation rate was witnessed in many sectors. Transportation sector recorded the highest inflation of 62.17 per cent and perishable food items, prices also increases by 36.34 per cent, it added.
Meanwhile, the education sector reported a single digit inflation of 9.46 per cent, and the communication sector reported an inflation of 1.96 per cent, Dawn reported citing PBS.
Motor fuel, liquefied hydrocarbons and electricity charges recorded 95 per cent increase in year-on-year inflation, as per the data.
Earlier, Pakistan’s finance ministry predicted the inflation rates to go beyond 15 per cent in the upcoming fiscal year, local media reported.
The Economic Adviser’s Wing (EAW) Monthly Economic Update for June & Outlook had previously said, “Despite achieving the growth of 5.97pc in FY2022, the underlying macroeconomic imbalances associated with domestic and international risks are making growth outlook indistinct.”
The EAW also said that the demand management policy of State Bank of Pakistan (SBP) might be unsuccessful because of the constraints in supply and higher international commodity prices, adding that the policy might further reduce income levels.
The report further mentioned that several potential risks might affect the growth aspects of the country even if they are expected to remain satisfactory.
One of the potential risks involve the trading partners of the country. In an attempt to counter inflation, the central banks of the country’s trading partners are increasing their interest rates which might cause recession with these countries.
Another potential risk can be caused by an increase in the domestic interest rates of the SBP. “Exchange rate depreciation is also a source of concern as it makes the imported raw material more expensive,” the report added.
The increase in domestic consumer prices is affecting the income of the people by limiting the spending power of consumers and investors, local media reported. (ANI)