How significant is the inflation problem in Pakistan?

Pakistan was facing high inflation. Inflation is the rate at which the general level of prices for goods and services is rising and, as a result, the purchasing power of the currency is declining.

In Pakistan, inflation had been on the rise for several months and was at a multi-year high. According to the Pakistan Bureau of Statistics, the Consumer Price Index (CPI) had increased by 9.05% in July 2021 compared to the same month in the previous year. The prices of food items, especially wheat, sugar, and edible oil, had risen sharply, which had a significant impact on the inflation rate.

The government had implemented several measures to control inflation, including increasing the interest rate, reducing taxes on essential food items, and importing food items to increase the supply. However, these measures had not yet had a significant impact on the inflation rate. The high inflation rate was causing significant hardship for low-income households, who were struggling to afford basic necessities such as food and healthcare.

Inflation last month surged to 31.5 percent, its loftiest position since 1974, according to the rearmost numbers released by the Pakistan Bureau of Statistics on March 1.