Inflation to hit record high in Pakistan in coming months, reveals government data
ISLAMABAD – According to the Monthly Economic Update and Outlook released by the finance ministry on Saturday, the government expects high inflation to persist in the coming months, potentially reaching a record high of 38% in April, driven by increases in food and energy prices.
The short-term inflation measured by the Sensitive Price Indicator (SPI) was 46.8% last week, slightly lower than the record high of 47.2% observed a week ago. Additionally, monthly inflation measured by the Consumer Price Index (CPI) was 35.4% in March, marking the highest on record.
The ministry attributed the rise in overall prices to the rupee's depreciation and rising administered prices. The government has reconstituted a national price monitoring committee under the head of the planning minister to monitor prices with provincial chief secretaries.
However, the committee has held only a couple of meetings over the past year. The ministry’s outlook also noted that Pakistan’s economy is still facing significant challenges, including high inflation and slow economic activity.
Nonetheless, some positive signals are emerging due to the government's stabilisation policies, such as a surplus in the current account of the balance of payments. The ministry expects the completion of the IMF programme to attract more capital inflows, stabilising the exchange rate and alleviating inflationary pressures.