Pakistan's Inflation Surges to 11.2%, Transport and Food Costs Soar

Pakistan's inflation rate surged to 11.2% in August, marking a return to double digits after falling below 10% in July. The Consumer Price Index (CPI) recorded a sharp increase across both urban and rural areas, according to the Pakistan Bureau of Statistics (PBS). This rise has been attributed to higher fuel costs, food shortages, and government taxation.

The government's decision to fully pass on international fuel costs and multiple taxes onto consumers has contributed significantly to transport inflation, which surged 20.2%. Diesel prices in dollar terms were the highest in South Asia, while petrol ranked second after Bangladesh.

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