ISLAMABAD: Pakistan’s annual consumer price inflation reached 24.9% in July, up from 21.3% in June and the highest in 14 years. bureau of statistics said on Monday.
Non-food items, mainly fuel and electricity tariffs, were the major reason for the increase, it said, adding that hike in prices for vegetables, pulses, cooking oil, wheat flour and milk was also a significant factor.
The bureau said that on a month-on-month basis, inflation rose 4.3 per cent in July.
Pakistan is in economic turmoil with rapidly depleting foreign reserves, historical depreciation of the rupee against the US dollar and rising inflation.
However, adequate measures have been taken to control the current account deficit as energy imports declined and non-energy imports declined marginally, the central bank and the finance ministry said in a joint statement.
This was released on Sunday night, when the ministry announced that the country’s imports had fallen by a third in the month of July.
Finance Minister Mifta Ismail on Sunday said a significant cut in imports – both in oil and non-oil payments – would ease pressure on the rupee, which had fallen more than 25% against the US dollar this year.
On Monday, the rupee improved slightly with a strength of 53 paise.
“Macroeconomic policies – both fiscal policy and monetary policy – have been suitably tightened to reduce demand pressures and rein in the current account deficit,” the joint statement said.
It states that the government is ready to implement all the terms agreed International Monetary Fund To be able to get their next installment if approved by the board, which is likely to meet later this month.
International Monetary Fund An employee-level agreement was reached with Pakistan last month for the disbursement of a $1.2 billion tranche that would open up other external financing avenues.
Non-food items, mainly fuel and electricity tariffs, were the major reason for the increase, it said, adding that hike in prices for vegetables, pulses, cooking oil, wheat flour and milk was also a significant factor.
The bureau said that on a month-on-month basis, inflation rose 4.3 per cent in July.
Pakistan is in economic turmoil with rapidly depleting foreign reserves, historical depreciation of the rupee against the US dollar and rising inflation.
However, adequate measures have been taken to control the current account deficit as energy imports declined and non-energy imports declined marginally, the central bank and the finance ministry said in a joint statement.
This was released on Sunday night, when the ministry announced that the country’s imports had fallen by a third in the month of July.
Finance Minister Mifta Ismail on Sunday said a significant cut in imports – both in oil and non-oil payments – would ease pressure on the rupee, which had fallen more than 25% against the US dollar this year.
On Monday, the rupee improved slightly with a strength of 53 paise.
“Macroeconomic policies – both fiscal policy and monetary policy – have been suitably tightened to reduce demand pressures and rein in the current account deficit,” the joint statement said.
It states that the government is ready to implement all the terms agreed International Monetary Fund To be able to get their next installment if approved by the board, which is likely to meet later this month.
International Monetary Fund An employee-level agreement was reached with Pakistan last month for the disbursement of a $1.2 billion tranche that would open up other external financing avenues.