Islamabad [Pakistan], November 4 (ANI): Pakistan’s inflation rate rose for the second consecutive month, reaching 6.2 per cent in October, driven by price hikes across multiple sectors—particularly non-food and non-energy goods—signalling renewed inflationary pressures.
According to data released by the Pakistan Bureau of Statistics (PBS) on Monday, the year-on-year rise aligned with both government and market projections. Authorities attributed the increase to supply disruptions caused by recent floods and the temporary closure of the Pakistan-Afghanistan border, The Express Tribune reported.
Urban inflation climbed by 6 per cent compared to last year, while rural inflation rose more sharply at 6.6 per cent, making the issue a renewed economic concern after months of relative stability.
Core inflation—a key measure excluding volatile food and energy prices—continued to climb, suggesting that underlying inflationary trends remain persistent. PBS data showed that core inflation in urban areas increased to 7.5 per cent from 7 per cent a month earlier, while in rural regions it rose to 8.4 per cent from 7.8 per cent.
The World Bank recently revised Pakistan’s inflation outlook for the current fiscal year to 7.2 per cent, slightly above the official target.
The State Bank of Pakistan (SBP) had earlier warned that inflation could rise temporarily due to flood-related shocks before stabilizing later in the fiscal year. Despite this, the SBP maintained its benchmark interest rate at 11 per cent—well above the headline inflation rate.
Finance Minister Muhammad Aurangzeb said interest rates were moving in the right direction and expressed optimism about further reductions. However, the business community has urged the government to ease borrowing costs, arguing there is ample room for rate cuts.
The Express Tribune reported that the government allocated PKR 8.2 trillion for interest payments this fiscal year, although Finance Secretary Imdad Ullah Bosal expects actual spending to be lower due to improved debt management. Meanwhile, the SBP warned that the 4.2 per cent economic growth target for the year is likely to be missed.
Food inflation also intensified, rising to 4.5 per cent in urban areas and 6.8 per cent in rural regions. Prices of non-perishable food items, which make up nearly 30 per cent of the inflation basket, increased by 6.2 per cent on average, while perishable goods rose by 1.7 per cent.
Border disruptions sent tomato prices soaring by 127 per cent, sugar prices climbed by 35 per cent, and wheat and flour costs also jumped. In contrast, prices of onions and chicken fell sharply.
Gas tariffs increased 23 per cent year-on-year, while electricity rates dropped 16 per cent. Minister for Power Sardar Awais Leghari attributed the fall in power tariffs—down by PKR 10.3 per unit from last year—to renegotiated energy contracts and greater efficiency improvements. (ANI)
About The Author
