Pakistan is currently facing serious economic crises and citizens of Pakistan are in tough times due to increased inflation. With weekly and monthly price indicators, Finance Ministry predicted rise in fuel and energy prices in future.
To secure IMF funding, central bank is working on policy rates and second round effect of these policies will increase the inflation in country.
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Economic Update & Outlook
The Finance Ministry said in its Monthly Economic Update and Outlook that Inflation may jack up after the second round effect. The recent disruptions in political and economic situations are also causing inflation.
The Sensitive Price Indicator (SPI) predicted short-term rate of inflation in last week recorded as 46.65pc, and monthly inflation recorded was 31.6pc highest in six decades.
The Ministry of Finance explained that keeping in view the market situations, demand and supply gap, and import export delay, the inflation is expected to increase in coming months.
Due to floods, many crops of Pakistan lagged out and not yet been fully recovered which is causing production loss and food shortage. This factor is causing increase in available food items more than normal level.
The political and economic uncertainty of Pakistan is also another reason of increased inflation.
The detailed report about inflation also mentioned about climatic conditions, the delay in rains as predicted by Met office Pakistan could effect the wheat production.
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Despite all the challenges, government and concerned authorities are trying to deal with increasing inflation and providing citizens with ease and relief packages.