CPI Inflation rises further in Pakistan
Shares
In August 2023, Pakistan witnessed a notable development in its economic landscape, as the Consumer Price Index (CPI) based inflation recorded a year-on-year increase of 27.4 percent. This figure marked a slight respite compared to the previous month, where inflation had reached 28.3 percent, and a marginal increase from the 27.3 percent recorded in August 2022. The Pakistan Bureau of Statistics (PBS) released these alarming statistics, revealing the economic challenges facing the nation.
On a month-on-month basis, the inflation rate for August 2023 amounted to 1.7 percent. While this represented a decrease from the 3.5 percent surge observed in the previous month, it remained substantially higher than the 2.4 percent increase recorded in August 2022. This data indicates the persistence of inflationary pressures within the Pakistani economy.
Looking ahead, concerns loom over the possibility of even higher inflation in the coming months. A significant contributor to this concern is the recent substantial increase in petroleum prices imposed by the government. However, the situation is not solely attributed to rising fuel costs; the rapid depreciation of the Pakistani rupee against the US dollar over the past two weeks has the potential to exacerbate the inflationary challenge.
