Inflation clocks in at 28.3pc in January

Inflation, measured by the Consumer Price Index (CPI), surged by 28.3 per cent year-on-year in January, according to data released from the Pakistan Bureau of Statistics (PBS) on Thursday. This is the last monthly CPI data before the general elections due on Feb 8 and comes as the country undertakes reforms linked to a $3 billion Standby Arrangement with the International Monetary Fund (IMF). According to the PBS, monthly inflation for Jan registered a 1.83pc rise from the previous month. “Inflation in January is higher than earlier expectations mainly due to energy prices and food inflation. This was also one of the reasons given by the central bank for not easing rates now,” said Mohammed Sohail, CEO of Karachi-based brokerage firm Topline Securities. Earlier this week, the State Bank of Pakistan (SBP) held its key rate at 22pc for the fifth policy meeting in a row and increased its full-year inflation projections.