Inflation has become a serious global problem that affects all countries. With a 27.4% inflation rate, Pakistan is struggling with rising costs, which has led to a closer look at how this number compares to other nations facing comparable economic difficulties.
The inflation rate stayed above target at 27.4% in August, data showed on Friday, as reforms set out as conditions for an International Monetary Fund (IMF) loan complicate the task of keeping price pressures and declines in its rupee currency in check
The South Asian nation is embarking on a tricky path to economic recovery under a caretaker government after a $3 billion loan program, approved by the IMF in July, averted a sovereign debt default.
Reforms linked to the bailout, including an easing of import restrictions and a demand that subsidies be removed, have already fuelled annual inflation, which rose to a record 38.0% in May. Interest rates have also risen, and the rupee hit all-time lows. Last month the currency fell 6.2%.
The August data from Pakistan’s statistics bureau showed a slight easing from July’s 28.3% inflation rate, but food inflation remained elevated at 38.5%
