Pakistan's Inflation Surges to 11.2% Amid Fuel Costs and Food Shortages
Pakistan's inflation rate has risen to 11.2% in August, surpassing the 10% mark after just one month.
The increase is attributed to higher fuel costs, government taxation, and food shortages, which have driven up the cost of living for households across both urban and rural areas.
The Consumer Price Index (CPI) inflation has accelerated due to the government's policy of fully passing international fuel costs onto consumers, along with multiple taxes. Provincial authorities have struggled to maintain adequate wheat supplies, leading to a 128% year-on-year increase in tomato prices, 125% rise in onions, and 87% surge in wheat prices.
The federal government has decided to import up to one million tonnes of wheat after Sindh and Punjab failed to meet procurement targets. Despite raids against hoarding, food prices continue to increase, with milk products becoming nearly 10% costlier.