|
In
May, the CPI was up 13.8% on the year. The month-on-month rise
in June was 6.3%.
The spike comes as fuel prices have risen about 90% since
end-May after the government scrapped costly fuel subsidies in a
bid to cut its surging fiscal deficit and secure resumption of
an IMF bailout programme.
Transport saw the biggest rise, with its index rising 62.2% in
June on the year.
The price index for food items, which make up about a third of
the CPI basket, rose 25.9%.
Pakistan has been struggling with high inflation for the last
few months. The CPI index rose 12.1% for financial year 2021-22,
which ended in June, compared with 8.9% in the last financial
year.
Despite rising global oil prices, subsidies for fuel and power
were adopted in March 2022 by the government of previous Prime
Minister Imran Khan, as he faced mounting discontent over his
handling of the economy and rising inflation.
He was ousted in April, and the new government began reversing
the costly subsidy, which it brought on par with international
prices late last month.
Prices of fuel were hiked further on Thursday, with the
cash-strapped government imposing a petroleum levy in its battle
to reduce the fiscal deficit.
The levy, which officials expect to rise even further, was part
of fiscal consolidation measures agreed with the IMF to resume
the bailout programme.
Adding to Pakistan's inflation woes has been the weakening of
the rupee against the dollar.
(Reporting by Syed Raza Hassan; Writing by Gibran Peshimam;
Editing by Toby Chopra, Clarence Fernandez and Alex Richardson)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
