Pakistan took the crown for Asia’s fastest inflation from Sri Lanka as a weaker currency and rising food and energy costs drove price gain to a record in April.
Consumer prices rose 36.4% in April from a year earlier, the highest since 1964, according to data released by the statistics department on Tuesday. That compares with a median estimate for a 37.2% gain in a Bloomberg survey and a 35.4% increase in March. The data shows Pakistan’s inflation outpaced price gains in Sri Lanka that eased to 35.3% in April and is starting to show signs of recovery from an economic crisis.
The Pakistani rupee is one of the worst performing currencies globally so far in 2023, declining 20% to the dollar, and making imported goods more expensive. Transport prices climbed 56.8% while food inflation quickened 48.1% in April from a year earlier, data showed. Clothing and footwear prices gained 21.6% and housing, water and electricity costs rose 16.9%.
Pakistan’s inflation is expected to rise further after authorities raised taxes and fuel prices to meet the IMF’s conditions for the revival of a $6.5 billion loan programme. To rein in price pressures, the State Bank of Pakistan hiked its benchmark interest rate last month to 21% – the highest since central bank data going back to 1956. Rising inflation could keep borrowing costs elevated for the South Asian nation that struggling with a slow recovery after last year’s floods. High prices is adding further pressure on PM Shehbaz Sharif who is grappling with a political crisis. His rival Imran Khan is seeking early elections and has threatened to return to street protests.
Consumer prices rose 36.4% in April from a year earlier, the highest since 1964, according to data released by the statistics department on Tuesday. That compares with a median estimate for a 37.2% gain in a Bloomberg survey and a 35.4% increase in March. The data shows Pakistan’s inflation outpaced price gains in Sri Lanka that eased to 35.3% in April and is starting to show signs of recovery from an economic crisis.
The Pakistani rupee is one of the worst performing currencies globally so far in 2023, declining 20% to the dollar, and making imported goods more expensive. Transport prices climbed 56.8% while food inflation quickened 48.1% in April from a year earlier, data showed. Clothing and footwear prices gained 21.6% and housing, water and electricity costs rose 16.9%.
Pakistan’s inflation is expected to rise further after authorities raised taxes and fuel prices to meet the IMF’s conditions for the revival of a $6.5 billion loan programme. To rein in price pressures, the State Bank of Pakistan hiked its benchmark interest rate last month to 21% – the highest since central bank data going back to 1956. Rising inflation could keep borrowing costs elevated for the South Asian nation that struggling with a slow recovery after last year’s floods. High prices is adding further pressure on PM Shehbaz Sharif who is grappling with a political crisis. His rival Imran Khan is seeking early elections and has threatened to return to street protests.