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Nothing is cheap, nothing: Pakistan's inflation at 58-year high, a record

Mar 03, 2023 11:20 AM IST

Pakistan Economic Crisis: In February, prices rose 4.3 per cent compared to January, the highest rate since October's 4.7 per cent.

Monthly inflation jumped to 31.6% in February year-on-year, Pakistan Bureau of Statistics said. The monthly inflation is measured by a basket of products called the Consumer Price Index (CPI). In February, prices rose at the fastest pace ever in Pakistan's history, data showed which comes as food and transport costs drove up inflation to a point where analysts fear "families will have to make choices and sacrifices," Pakistan's Dawn reported.

Pakistan Economic Crisis: People visit a market for shopping in Lahore, Pakistan.(AP)
Pakistan Economic Crisis: People visit a market for shopping in Lahore, Pakistan.(AP)

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This marks the highest annual rate since available data, i.e. July 1965, according to research firm Arif Habib Ltd which also expected that the inflation is set to rise even further in the coming months. Last month inflation surpassed 30% after being above 20% for eight months from June to January. Inflation was 12.2% in February last year, the report said.

With this, costs in four categories- transport, food and non-alcoholic beverages, alcoholic beverages and tobacco, and recreation and culture- jumped by around 50 per cent.

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In February, prices rose 4.3 per cent compared to January, the highest rate since October's 4.7 per cent. Meanwhile, Pakistan rupee plunged by nearly PKR19 against the US dollar ahead of the central bank's monetary policy review amid concerns over a stalled International Monetary Fund (IMF) deal.

Pakistan has been undertaking strict austerity measures as it thrashes out a deal with the IMF to secure more than USD 1 billion in funding.

Following a historic decline in the Pakistani rupee against US dollar, the per tola gold price in Pakistan surged by a whopping 4.77%, Geo News reported quoting All-Pakistan Sarafa Gems and Jewellers Association (APSGJA) which said that the price of gold (24 carats) surged by 9,400 per tola and 8,058 per 10 grams to settle at 206,500 and 177,040, respectively.

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