Inflation may increase further in Pakistan, Pak Finance Ministry warns

The weekly and monthly prices of essential commodities are already skyrocketing in Pakistan. At the same time, now the Finance Ministry has warned the people of Pakistan that inflation will increase further. According to a Pakistani newspaper, the Finance Ministry in its monthly outlook report released on Friday also said that political instability is driving the country towards more inflation.

Inflation may increase in Pakistan
According to Pakistan’s newspaper, the impact of the second round of policy decisions was a rise in energy and fuel prices, central bank policy rates and rupee depreciation to secure International Monetary Fund funding. Were.

Withholding its inflation forecast data for the previous month in the neighboring country, the finance ministry said the monthly economic indicator, which predicts economic growth based on past and present indicators, pointed to a gloomy outlook for the economy. The medium is that it has slowed down.

Trouble people
The short-term rate of inflation as measured by the Sensitive Price Indicator (SPI) hit a record 46.65 percent last week, while monthly inflation as measured by the Consumer Price Index (CPI) reached 31.6 percent in February. Which is the highest in 6 decades.

However, in the latest reading released on Friday, the SPI dropped slightly to 45.36 per cent. According to Dawn, the CPI reading for March is expected soon.

Ministry warned
The ministry said that market volatility due to relative demand and supply gap of essential commodities, exchange rate depreciation and recent adjustments in administered prices of petrol and diesel have contributed to inflationary pressures. is expected to increase. The ministry also said that the loss of production due to the impact of floods has not yet been fully recovered, especially of major agricultural crops.

Economic crisis increased uncertainty
In addition, the economic crisis triggered by the delay in the stabilization program has added to economic uncertainty, which has kept inflation expectations firm.

The Economic Adviser’s wing of the Finance Ministry also cited ineffective policy measures and the helplessness of the authorities in arresting the inflationary spiral, Dawn reported. Despite the contractionary monetary policy of the SBP, inflation expectations are not abating.