Economy Inflation and prices Pakistan's inflation has surpassed that of Sri Lanka
And is the fastest in Asia. Inflation could remain high as food and energy costs rise The local currency is 20% lower against the dollar this year.
Pakistan has taken over the crown of Asia's fastest inflation from Sri Lanka
A weak currency and rising food and energy prices pushed price growth to a record high in April.
In April from a year earlier consumer price rose 36.4%.
It was the highest level since 1964 according to data released Tuesday by the Bureau of Statistics.
Pakistan's inflation fell to 35.3% in April data showed outpacing price increases in Sri Lanka.
Which is beginning to show signs of recovery from an economic slowdown.
The Pakistani rupee one of the world's best-performing currencies in 2023 has fallen 20 percent against the dollar making imported goods more expensive.
Transport prices rose 56.8%
While food inflation rose 48.1% in April from a year earlier.
The prices of clothing and footwear rose by 21.6% and the prices of housing
Water and electricity by 16.9%.
Inflation is expected to rise further in Pakistan after officials raised taxes and fuel prices to meet the IMF's conditions for renewing a $6.5 billion loan program.
The aid fund will be especially important for Pakistan to pay for the import of essential goods.
To prevent price pressure the State Bank of Pakistan increased it The next review of monetary policy is scheduled for June 12 The central bank said last.
However the IMF is looking for financing guarantees
Before renewing support.
Given the rising inflation in Pakistan in April
The central bank is unlikely to raise rates further.
We believe that the State Bank of Pakistan has raised rates significantly, and we should wait to see the impact of the tightening that has already been done.
Real rates have reached positive values in the 12-month outlook.
Our estimates suggest that inflation will peak in May and then gradually ease as food prices cool and a rapid comparative base from last year sets in.
The benchmark interest rate rose to 21% last month the highest since 1956 central bank data showed.
Rising inflation could push up borrowing costs for the
South Asian nation which is struggling to recover from last year's floods.
Month that inflation was stabilizing, but recent data suggest optimism is misplaced according to Are Runs director of the Atlantic Council's South Asia Center.
The latest numbers provide further evidence that the central bank remains behind the curve Runs said.
The biggest concern is the persistent rise in food prices - more than four million citizens below the poverty line and rising food prices hurt countless people families for generations to come.
High prices are increasing pressure on Prime Minister Shabbat Sharif, who is facing a political
crisis.
Imran Khan's opponents are demanding early elections and have threatened street protests if their demands are not met.
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