Pakistan's Inflation Rate Surges Back into Double Digits Amid Fuel Costs and Food Shortages

Pakistan's inflation rate has surged back into double digits after reaching 11.2% in August, according to the Pakistan Bureau of Statistics (PBS). This marks a significant increase from the previous month when it fell below the 10% mark.

The Consumer Price Index (CPI) inflation has increased across both urban and rural areas, with food prices being a major source of concern. The government's policy of passing international fuel costs onto consumers has contributed to this surge in inflation, along with multiple taxes and provincial authorities struggling to maintain adequate wheat supplies.

Petrol prices have increased by 25% compared to last year, contributing significantly to transport inflation, which surged 20.2%. Diesel prices were found to be the highest in South Asia, while petrol ranked second after Bangladesh. The price of diesel was PKR 116 per litre and petrol was PKR 101 per litre.

Food prices have emerged as another major source of concern, with urban food inflation reaching 12.1% and rural food inflation standing at 13.2%. Tomato prices soared by 128%, onions rose 125%, wheat prices increased by 87%, and wheat flour became 73% more expensive.