Inflation Have Been Record-Breaking High And Will Continue To Grow
The largest increase in the CPI basket since mid-1965 occurred in February, according to the data. The rupee fell against the dollar.
In the previous month, prices grew at the quickest pace ever recorded in the country’s history, as per available information, with food, drinks and travel costs pushing inflation to a level where economists believe that people will have to make decisions and sacrifices.
The Consumer Price Index (CPI), a measure of monthly inflation, increased to 31.6% in February from the previous year, according to data released on Wednesday by the Pakistan Bureau of Statistics.
As reported by the research company Arif Habib Ltd., this was the highest yearly rate since there have been records, or since July 1965. In the near future, this rate is predicted to increase even more.
After remaining above 20 per cent from June through January for eight straight months, inflation last month topped 30 per cent.
The CPI basket of goods and services is broken down into 12 primary components with varying weights. Four of them saw an increase in expenditures that was almost 50% or more: transportation, food and non-alcoholic drinks, alcoholic drinks and tobacco products, and leisure and culture.
The pace of price growth in February was the greatest since October when it was 4.7 per cent.
In order to earn an additional Rs170 billion ($639 million) in income for the fiscal year that runs through July, the government introduced a supplemental bill last month that raised the goods and services tax from 17 to 18 per cent.
While negotiating an agreement with the International Monetary Fund (IMF) to get a loan of more than $1 billion, the government is tightening its belt, wants to raise money through taxes, and has allowed the rupee to weaken.
On Wednesday, the rupee lost 1.73 per cent versus the dollar, ending the day at 266.11. Since the beginning of the year, the rupee has lost roughly 15 per cent of its value, which has increased inflation.
For urban and rural areas, respectively, core inflation rose by 17.1 per cent and 21.5 per cent year over year.
With the data for February, the average annual inflation rate for this fiscal year is now 26.2 per cent, up from 10.52 per cent in 2017. According to a PBS spokeswoman, the annual average inflation rate for the fiscal year 1973–1974 was 32.78 per cent.
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