The persistent issue of inflation

Pakistan’s recent inflation rate has significantly concerned the government and the general public. Inflation is defined as the rise in the general price level of goods and services over a particular period. Several factors have contributed to inflation in Pakistan. Firstly, the country has been facing a balance of payments crisis, leading to a devaluation of the Pakistani rupee. As a result, the prices of imported goods have increased, leading to an increase in the general price level. Secondly, the country is heavily reliant on oil imports, and the rise in oil prices has also contributed to inflation. Inflation in Pakistan continues to rise, with the latest official figures putting the consumer price index at 35.4pc on a year-on-year in March 2023, compared to the increase of 31.5pc in the previous month and 12.7pc in March 2022. The multi-decade-high rate is primarily driven by soaring food and fuel prices. In particular, the prices of vegetables, meat, and other food items have seen significant increases in recent months, with several factors contributing to the rise.