Pakistans inflation remains in double digits as fuel, power costs bite

According to The Express Tribune, the latest inflation reading remained higher than the Planning Commissions expectations, highlighting continued pressure on Pakistani households despite an improvement in food prices. Inflation stood at 10.1 per cent in urban areas and 10.5 per cent in rural regions.

Food inflation declined substantially, falling to 8.1 per cent in cities and 7.7 per cent in rural areas. However, energy-related inflation moved in the opposite direction, reaching 11.5 per cent in urban areas and 13.1 per cent in rural areas.

Petrol prices were 39 per cent higher than a year earlier, while electricity became 33 per cent more expensive. Transport services also recorded a 30 per cent annual increase, adding to the financial burden on consumers.

The government has told the International Monetary Fund that inflation could average around 7.5 per cent during the fiscal year if global conditions stabilise and Brent crude averages about USD 80 per barrel.

However, if oil prices remain near USD 100 through December, the government estimates that annual inflation could reach 8.2 per cent. Authorities expect price pressures to remain elevated until December before gradually easing.

Food prices also remain uneven. Onion prices surged 125 per cent year-on-year, while wheat prices increased 41 per cent and wheat flour became 32 per cent more expensive, as cited by The Express Tribune.

The government is meanwhile moving to import 765,000 tonnes of wheat. In contrast, prices of potatoes, chicken, eggs and sugar declined significantly.

Core inflation, excluding food and energy, moderated to between 8.1 per cent and 8.6 per cent. Yet the continued rise in electricity, fuel and transportation costs remains a major challenge for Pakistans inflation outlook, as reported by The Express Tribune. (ANI)