ISLAMABAD – Crisis hit Pakistan outpaced bankrupt Sri Lanka in another grim record amid dilapidating currency and skyrocketing food and energy prices touched the highest figures in nearly last six decades.
Data released by the Pakistan Bureau of Statistics revealed that the inflation rate of the fifth most populated nation surpassed Sri Lanka’s, as the country is facing an economic, and political crisis along with a law and order situation and with all woes, the country holds the record for having fastest inflation in the region.
Consumer prices soared 36.4 percent last month compared to March 2023 – the highest surge since 1964. Food inflation saw 48.1pc jump, clothing, and footwear costs increased 21.6pc, transport prices climbed by a whopping 56.8pc, while utility bills climbed 16.9 pc.
Top 10 CPI (YoY) since Jul'65@PBSofficialpak @StateBank_Pak #PBS #Inflation #Pakistan #Economy #AHL pic.twitter.com/NsWQvMGIS1
— Arif Habib Limited (@ArifHabibLtd) May 2, 2023
It further shows that these rural areas faced food inflation of nearly 40.2 percent, the highest in years as experts called it hyperinflation in the food segment.
In Sri Lanka, which managed to receive the IMF tranche, the inflation rate eased to 35pc last month – as the Island nation is also facing economic challenges.
Reports shared by Bloomberg revealed that the Pakistani rupee remained among worst performing countries as imported goods moved up which adds fuel to the fire.
Amid the gloomy outlook, the inflation of the South Asian country is likely to move further as the government slapped hefty taxes on several items including fuel in a desperate attempt to salvage IMF’s requirements for bailout funds.
In April, the country’s central bank soared its benchmark interest rate to record 21pc, the highest level since 1956, in bid to limit price pressures. As stats show worst, experts warn that millions of citizens would fall below the poverty line in crisis hit nation.
All previous records broken, rising to nearly 50-year high of 31.5%
