Thursday, May 11, 2023

Pakistan's inflation rate is higher than Sri Lanka's, making it the fastest in Asia

Pakistan's inflation outpaces Sri Lanka's as Asia's fastest

 With a weaker currency and rising costs for food and energy, Pakistan beat Sri Lanka to the title of Asia's fastest inflation country in April.

According to data released on Tuesday by the department of statistics, consumer prices increased by 36.4% in April compared to the previous year, the highest rate since 1964. That contrasts and a middle gauge for a 37.2% addition in a Bloomberg overview and a 35.4% increment in Spring. According to the data, Sri Lanka's inflation outpaced Pakistan's, which eased to 35.3% in April and is beginning to recover from an economic crisis.

The Pakistani rupee is one of the most terrible performing monetary standards universally such a long ways in 2023, declining 20% to the dollar, and making imported merchandise more costly. According to the data, transportation costs went up by 568.8 percent in April, and food prices went up by 481.1% from a year earlier. Prices for clothing and footwear increased by 21.6 percent, while costs for housing, water, and electricity increased by 16.9 percent.

In order to meet the IMF's requirements for the revival of a $6.5 billion loan program, authorities in Pakistan raised fuel prices and taxes. This is expected to cause inflation to rise even more. The State Bank of Pakistan raised its benchmark interest rate to 21 percent last month, the highest level recorded by a central bank since 1956. This move was made in an effort to reduce price pressures. The South Asian nation struggling with a sluggish recovery from the floods of last year may continue to face higher borrowing costs as a result of rising inflation. The PM Shehbaz Sharif, who is dealing with a political crisis, is under even more pressure as a result of the high prices. Imran Khan, his rival, is seeking early elections and has threatened to participate in street protests once more.

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