Motorcyclists ride on a pedestrian bridge near a roadside market in Islamabad on May 2, 2023. , photo credit: AFP
Consumer prices in Pakistan have risen by a record 36.4% since April, the highest inflation rate in South Asia, the statistics bureau said on Tuesday, surpassing March’s previous record of 35.4%.
The bureau told Reuters that food inflation in rural areas of Pakistan was recorded at 40.2%. Food inflation shot up to 48.1% for both rural and urban areas, the highest since FY2016, when the bureau started recording separate categories.
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 secure funding, including removing the cap on the exchange rate resulting in a depreciating currency, raising taxes, removing subsidies and raising key interest rates to a record high of 21%.
The bureau said in a press release that prices rose 2.4% from March to April.
Persistent high inflation has resulted in change in lifestyle and consumption with the help of a large number of people.