Shafaqna Pakistan: Inflation in Pakistan climbed to a nearly two-year high of 10.9% in April, fueled by rising fuel costs, global supply disruptions, and increased petroleum taxation.
Data from the Pakistan Bureau of Statistics shows this is the first time since July 2024 that inflation has reached double digits, surpassing the government’s earlier estimate of 9%. The rise has affected both urban and rural consumers, with notable increases in energy, transport, and food prices.
The spike is largely attributed to higher global oil prices amid geopolitical tensions involving the United States, Israel, and Iran, which pushed Brent crude higher and raised domestic fuel costs.
Fuel prices have been a key driver of inflation, with motor fuel rising 40% year-on-year and diesel jumping 93%. Additional pressure came from the government’s reinstatement of a diesel levy and the continued high tax on petrol, further accelerating price increases.
Energy costs have also climbed sharply, with electricity prices up by 33% and liquefied hydrocarbons rising by 63% compared to last year. Overall, energy inflation reached around 13.8% in urban areas and 13.6% in rural regions.
Food inflation also accelerated, reaching 6.9% in urban areas and 7.3% in rural areas. Key food items saw steep increases, including tomatoes (75%), onions (42%), and wheat and flour (around 30–40%). Transport costs also rose by approximately 38%, adding further pressure on households.
The government had set an annual inflation target of 7.5%, but officials now expect it may be missed due to continued increases in fuel prices.
Meanwhile, under its programme with the International Monetary Fund, Pakistan has been asked to expand financial support through the Benazir Income Support Programme. The number of beneficiaries is expected to rise to 10.2 million to help cushion the impact of rising prices on low-income households.
Economists warn that with energy and fuel costs still volatile, inflationary pressure may persist in the coming months.
Source: Dunya News
