Pakistan is grappling with a surge in inflation, witnessing a 42.60% increase during the past week. The Sensitive Price Index (SPI), based on 51 essential items, reveals a continuous rise for the sixth consecutive week, impacting the cost of living. Factors contributing to inflation include gas price hikes, elevated food prices (particularly flour, rice, pulses, spices, and vegetables), and increased power and transportation costs. November’s monthly inflation surpassed predictions, registering a 29.2% increase compared to the same month in 2022. Gas prices saw a staggering 1,108.59% annual increase, leading to concerns about the cost-of-living crisis and its impact on purchasing power. The rising inflation trend poses challenges to economic recovery, with higher interest rates complicating the business environment and hindering job creation and wage hikes. The State Bank of Pakistan’s adherence to monetary tightening aligns with international recommendations but raises concerns about the overall economic outlook.
Pakistan faces inflation surge of 42.60% admidst economic challenges.
