In August, Pakistan experienced a surge in headline inflation, reaching27.4% year-on-year, as indicated by official data. This increase wasattributed to a depreciating rupee and escalating expenses linked to an IMFbailout package, which hindered the government’s efforts to control risingprices.
During the summer, Pakistan faced a looming default situation, but it wasaverted when the International Monetary Fund provided assistance under thecondition that the government reduce subsidies that had previouslymoderated living expenses.
Subsequently, the rupee’s value reached a significant milestone, surpassingRs300 against the US dollar, while Islamabad raised petrol prices andwitnessed a spike in electricity costs, leading to widespread discontentamong the population.
Government statistics released on Friday indicated a 1.7% month-on-monthprice increase in August, with the year-on-year figure of 27.4% trailingonly one point behind July’s, offering little relief.
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In August, motor fuel costs rose by 8% compared to July, water bills inurban areas increased by over 11%, and the price of tomatoes surged by asmuch as 82%
