Arif Habib Limited analysts predict that inflation in Pakistan is expected to reach a record high of 36.5% in April 2023, mainly driven by escalating food prices. The Consumer Price Index (CPI) surge is primarily due to increases in categories such as transport, housing, food, restaurants and hotels, household equipment, recreation and culture, clothing and footwear, and miscellaneous expenses. As per the pk-revenue report, it is expected that the Consumer Price Index (CPI) will experience a 2.44% increase on a month-on-month basis, mainly due to a rise in food inflation. This is attributed to the surge in prices of almost all perishable items, particularly wheat and fresh fruits.
It is important to highlight that due to the elevated prices of food and energy, as well as a weaker currency, Pakistan's headline inflation is anticipated to remain over 30% for the coming months. According to pk revenue's report, the increase in inflation could have a negative impact on the economy and the general public, potentially leading to an increase in poverty levels as the cost of living rises. Furthermore, it could decrease consumer spending, and affect businesses, consequently impacting the overall economy. Therefore, policymakers may need to implement appropriate measures to counter the impact of inflation and ensure economic stability for the country, as per the report.
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