Pakistan’s inflation hit a record on the back of a badly depreciating currency, skyrocketing food and energy costs, and low growth. The inordinate delay in bailout loans from International Monetary Fund, and the increase in fuel prices may make matters worse.
These developments have made Pakistan home to Asia’s fastest inflation, outpacing price gains in Sri Lanka which recorded a 35.3% inflationary increase in April. But now it has started showing signs of recovery from the economic crisis.
Pakistan Bureau of Statistics said on Tuesday that consumer prices surged by 36.4% in April 2023, the highest increase since 1964. Transport prices increased by 56.8% while food inflation rose to 48.1%. Meanwhile, clothing and footwear costs increased by 21.6%, and housing, water, and electricity bills climbed to 16.9%.
Inflation to rise
On the other hand, Sri Lanka's inflation rate eased to 35.3% in April. The depreciating value of the Pakistani rupee has made imported goods ...