Inflation shatters all records, spikes to nearly 50-year high of 31.5%.

ISLAMABAD -- In an alarming development, Pakistan's inflation - measured by the consumer price index (CPI) - broke all previous records and skyrocketed to 31.5% in February due to a steep rise in prices of food, housing, and transportation groups.

The fresh inflation reading issued by the Pakistan Bureau of Statistics (PBS) on Wednesday has also augmented the prospects of a further rise in interest rates in the upcoming monetary policy committee (MPC) meeting - which the central bank has preponed for March 2.

The inflation rate rushed to 31.5% in February over the year - the highest since the available data i.e. July 1965. Last time, in April 1975, the inflation had been recorded at slightly over 29%.

The pace of increase in the prices beats the expectations of the finance ministry that had just a day ago given a 28% to 30% inflation range.

The monthly inflation rate jumped 4.3% in February over January - which according to Sana Tawfiq - an economist at the Arif Habib Limited - surged due to an increase in the average prices of food items such as poultry, fruits, pulses, oil...

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