According to official figures, Pakistan’s headline inflation remained at 27.4% y/y in August as government efforts to control prices were thwarted by a falling currency and rising bills attributed to an IMF bailout package.
This summer, Pakistan was on the verge of going into default when the International Monetary Fund offered a lifeline deal under the condition that the government eliminate subsidies that had reduced living expenses.
Since then, the rupee has surpassed the historic level of 300 to the dollar, while Islamabad has raised the price of gasoline and increased the cost of power, causing a general uprising.
According to official statistics issued on Friday, prices increased 1.7 percent month over month in August. The year over year figure, which came in at 27.4 percent, fell only one point short of July’s level, indicating no reprieve.
Motor fuel increased in price by 8% in August compared to July, while urban water bills increased by over 11% and tomato prices increased by as much as 82 %.
Retailers in Pakistan have announced that they will close their stores on Saturday in protest at the rising prices, which have stoked the public’s ire ahead of next general elections.
