Karachi: Pakistan’s inflation rate stayed above target at 27.4 percent in August, data showed, as reforms set out as conditions for an IMF loan complicate task of keeping price pressures and declines in its rupee currency in check.

According to data released by Pakistan Bureau of Statistics (PBS), food inflation remained elevated at 38.5 percent year-on-year. Economic stabilisation is top challenge for country as it embarks on narrow recovery path after $ 3 billion IMF bailout averted sovereign debt default.

Reforms linked to bailout, including an easing of import restrictions and demand that subsidies be removed, have already fuelled annual inflation. Interest rates have also risen and rupee hit all-time lows. Last month currency fell 6.2 percent.

August data from PBS showed slight easing from July’s 28.3pc inflation rate, but food inflation remained elevated at 38.5pc with year-on-year increase in non-perishable food items at 42.79 percent and 12.69 percent for perishable food items.

Annual consumer inflation in urban and rural areas increased to 25 percent and 30.9 percent year-on-year respectively.

Meanwhile, highest year-on-year increase was recorded in categories of alcoholic beverages and tobacco (97.51pc), recreation and culture (61.38pc), non-perishable food items and furnishing and household equipment maintenance (41.71pc).

Published in The Daily National Courier, September, 02 2023

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