Inflation in Pakistan escalated to a record 36.4% in the year to April, primarily driven by food prices, making it the highest rate in South Asia and marking an increase from March’s 35.4%, according to the country’s statistics bureau. In rural areas, food inflation reached 40.2%, while for both rural and urban regions, it climbed to 48.1% – the highest level since FY16 when these categories began being recorded separately. Prices in April rose 2.4% compared to March.
Amreen Soorani, a 42-year-old head of research at JS Capital, a Karachi-based investment company, stated that the spike was expected due to hyperinflation in the food segment. While the trend may persist for a few more months, the base effect is anticipated to start from June 2023, causing a slower pace.
Despite the contractionary measures implemented by the central bank, the finance ministry…
