ISLAMABAD: As measured by the Consumer Price Index (CPI), inflation hit a two-year high of 13.37% in April 2022, which was only 1.6% higher than the previous month in the same month last year, Pakistan Bureau of Statistics (PBS) said.
The analysis shows food and energy costs as the main contributors to the hike in inflation. It is noteworthy that the inflation has remained in double digits for six consecutive months.
The last time the inflation rate was this high was eleven years back, in June 2011 when the CPI was recorded at 13.3%. However, in January 2020, it was even higher and stood at 14.6%.
With inflation reaching a two-year high, the ten-month average inflation rate (July-April 2021-22) rose to 11.04%, exceeding the State Bank of Pakistan’s anticipated upper limit for inflation. The central bank projected that CPI to be 9-11% by the end of this fiscal year.
Similarly, the International Monetary Fund (IMF) warned Pakistan in its most recent World Economic Outlook that rising inflation and the external environment had increased near-term risks. The fund sharply revised its previous projections, predicting that Pakistan’s current account deficit (CAD) would reach $18.5 billion and average inflation would be 12.7% by this fiscal year.