November 7, 2021
1 min read

Soaring inflation chokes Pakistan

The pass-through effect of higher oil prices, the EIU said, is reflected in rising inflation in power and transportation. …reports Asian Lite News

 The Economist Intelligence Unit (EIU) has said that inflation will remain high in Pakistan for the next six months and the rupee is likely to continue on a depreciatory path despite a support package from Saudi Arabia, Geo News reported.

The EIU’s assessment comes after data released by the Pakistan Bureau of Statistics (PBS) showed that the Consumer Price Index — a key marker of inflation — surged 9.2 per cent year-on-year in October.

“Strengthening inflationary headwinds are being driven largely by rapid import growth, exacerbated by a surge in global commodity prices, as the economy recovers from the disruption caused by the Covid-19 pandemic,” it said.

Pic credits IANS

“We continue to expect that upward pressure on consumer prices will persist during the first half of 2022, as the global economic recovery is likely to keep commodity prices elevated,” the EIU said, adding that the rupee will continue on a depreciatory path despite short-term relief in the form of a financial assistance package from Saudi Arabia due to Pakistan’s persistently wide trade deficit and strong inflationary pressures, the report said.

The pass-through effect of higher oil prices, the EIU said, is reflected in rising inflation in power and transportation.

“This was reflected in the transport category, which jumped by 14.4 per cent year on year. Similarly, prices for utilities (comprising electricity, water and gas) also experienced double-digit growth, rising by 12 per cent.”

The PBS data is in line with EIU’s view that consumer prices will remain elevated over the current and coming quarters (till the end of March 2022).

ALSO READ: Pakistan, TLP reach tentative truce

Previous Story

Mohammed bin Rashid welcomes Prez of Colombia at Expo 2020 Dubai

Next Story

NIA team in Canada to get Khalistani outfits terror tag

Latest from -Top News

Deadly Fever Grips Senegal

Currently, there is no vaccine or antiviral treatment approved for human use against RVF. Senegal is facing a growing public health emergency as the death toll from a Rift Valley Fever (RVF)

Protest Crackdown in Abidjan

The protest ban came just a day before the planned march, with the prefect of Abidjan declaring all gatherings illegal to “preserve public order” ahead of the polls. Authorities in Ivory Coast

Seychelles Chooses Herminie

Herminie’s win gives his United Seychelles party full control of government after it reclaimed a parliamentary majority during last month’s general elections. Seychelles’s opposition leader, Patrick Herminie, has emerged victorious in the

Fragile Peace Returns to Gaza

Carrying bags, blankets, and a few salvaged belongings, families walked through the dusty highway under the afternoon sun. Many pushed carts or led donkeys loaded with what was left of their possessions.

Egypt to Host Gaza Peace Talks

Cairo summit aims to end war and open a new chapter for regional stability. The summit will gather leaders and senior officials from more than 20 countries, including the United Kingdom, France,
Go toTop

Don't Miss

Baloch rights group stages protests in Germany

The protest was organized during the commemoration of the International

Gen Bajwa in US

Pakistani officials are also trying to secure a meeting with