Pakistan’s annual inflation rises to 14-year high at 24.9% in July – Times of India


ISLAMABAD: Annual consumer price inflation in Pakistan reached 24.9% in July, up from 21.3% in June and the highest in 14 years, the statistics bureau said Monday.
Non-food items, mainly fuel and electricity costs, were the main reason for the increase, it said, adding rising prices for vegetables, pulses, cooking oil, wheat flour and milk was also a major factor.
On a monthly basis, inflation rose by 4.3% in July, the agency said.
Pakistan is in economic turmoil with rapidly depleting foreign reserves, a historic depreciation of the rupee against the US dollar and rising inflation.
However, sufficient steps have been taken to contain the current account deficit as energy imports have declined and non-energy imports have declined moderately, the central bank and the Treasury Department said in a joint statement. .
It was released on Sunday evening, hours after the ministry announced that the country’s imports had fallen by a third in the month of July.
The significant cut in imports — in both oil and non-oil payments — will ease pressure on the rupee, which has fallen more than 25% against the US dollar this year, Treasury Secretary Miftah Ismail said Sunday.
The rupee recovered slightly on Monday with a appreciation of 53 paisa.
“Macroeconomic policies – both fiscal and monetary policy – ​​have been appropriately tightened to reduce demand-driven pressures and curb the current account deficit,” the joint statement said.
It added that the government was ready to implement all the conditions agreed with the International Monetary Fund to receive the next tranche if approved by the board of directors, which is likely to meet later this month.
The IMF reached a staff-level agreement with Pakistan last month for the disbursement of a $1.2 billion tranche, which will open other external financing options.

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