Pakistan's Inflation Surges to Double Digits Amid Fuel Cost Pressures

Pakistan's inflation rate surged to 11.2% in August, exceeding double digits for the first time in recent history. The sharp increase in Consumer Price Index (CPI) inflation has been attributed to higher fuel costs and government taxation.

The government's policy of passing on international fuel costs and multiple taxes to consumers has contributed significantly to the rising prices. Petrol was being charged with a combined burden of petroleum levy, carbon levy, and customs duty, amounting to PKR 116 per litre on petrol and PKR 101 on high-speed diesel.

Food prices have also 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.