Inflation in Pakistan reached a four-month high of 31.4% in September, driven by higher electricity and fuel prices. This is a major burden on consumers, who are already struggling with poverty and unemployment.
The Consumer Price Index (CPI), which measures inflation, rose to 31.4% in September from a year ago, according to the Pakistan Bureau of Statistics (PBS). This is the highest reading since May 2023.
The increase in energy prices was the main driver of inflation, with electricity prices up 164% and gas prices up 63% compared to a year ago. Petrol prices are also significantly higher, at Rs324 per litre.
Food inflation remains high, at 34% in both urban and rural areas. Sugar prices were particularly high, up 94% from a year ago.
The government and the State Bank of Pakistan are unlikely to meet their annual inflation target of 21%, despite raising interest rates to 22%.
The high inflation is hitting people in both rural and urban areas. The unemployment rate has jumped to 10%, up from 6.3% a year ago.
The core inflation rate, which excludes volatile energy and food prices, also increased in September, to 18.6% in urban areas and 27.3% in rural areas. This is well above the central bank's interest rate.
The prices of many essential goods have skyrocketed in recent months, including wheat flour (up 88%), spices (up 79%), tea (up 73%), and rice (up 64%).
In the non-food category, electricity charges increased by 164%, textbooks became expensive by 102%, and gas charges went up by 63%.
The average inflation rate for the first quarter of the current fiscal year stood at 29%, far higher than the official target of 21%.
The high inflation is causing significant hardship for people in Pakistan, and the government and the central bank need to do more to bring it under control.
