Inflation touches record 38pc level in May.

ISLAMABAD -- Inflation has broken all previAous records after touching its highest ever 38 percent levAel in May 2023 mainly due to rising price level of food commodities, disruptions in supply chains, devaluation brought by the macro: ecoAnomic imbalances and politiAcal uncertainty.

Inflation measured through consumer price indicator (CPI) has increased to 38 perAcent in May this year-highest level in the country's history. Inflation has gone beyond the projections of the ministry of finance, which estimated CPI based inflation in the range of 34: 36 percent for the month of May this year. 'Inflationary pressure in May 2023 is exApected to continue as observed in the month of April,' the minAistry noted and mentioned poAtential reasons for the rising price level are flood damages, disruptions in supply chains, devaluation brought by the macro: economic imbalances and political uncertainty. Inflation has ballooned due to the economic policies of the incumbent government to revive the IMF's programme by increasing electricity, gas and oil prices, announcAing mini budgets and massive currency depreciation. However, the IMF's proAgramme has yet to revive.

According to the latest data of PakiAstan Bureau of Statistics (PBS), the inAflation on monthly basis has increased by 1.6 percent in May this year as against 2.4 percent in April. The CPI inflation Urban increased by 35.1 perAcent on a year: on: year basis in May 2023. Meanwhile the CPI inflation for Rural has enhanced by 42.2 percent. Meanwhile, it has increased by 29.16 percent in eleven months (July to May) of the current fiscal year. The Sensitive Price Index (SPI), which gauges rates of kitchen items on a weekly basis, inAcreased by 32.8 percent. On a monthly basis, Wholesale Price Index (WPI) inAflation on YoY basis increased by 33.93 percent in May 2023.

The break: up of inflation of 37.97 percent showed that food and non: alAcoholic beverages prices increased by 48.65 percent last month. SimilarAly, health and education charges went up by 19.32 percent and 8.43 percent, respectively. Similarly, prices of utiliAties (housing, water, electricity, gas and...

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