The statistics office said on Monday that Pakistan’s annual consumer price inflation increased to 24.9 percent in July from 21.3 percent in June, which was the highest level in 14 years.
According to the report, non-food items—primarily fuel and power costs—were the main cause of the increase, with rising prices for wheat flour, milk, vegetables, pulses, and cooking oil also playing a significant role.
Details show that the CPI inflation rate was 21.3 percent in June 2022 as opposed to 8.4 percent in July 2021. When comparing one month to the next (MoM), inflation grew by 4.3 percent in July 2022 as opposed to 6.3 percent the month before and 1.3 percent in July 2021.
The issue has been made worse by the rupee’s depreciation versus the US dollar, which is diminishing Pakistanis’ purchasing power.
Although there are reports that the State Bank may increase its interest rate from its present level of 15%, economists are opposed to the bank’s strict policy, arguing that it would have a negative impact on GDP development.