By Staff Reporter
Inflation in Pakistan rose sharply to 10.9% in April, reaching its highest level in almost two years, according to data released by the Pakistan Bureau of Statistics.
This marks the first time since July 2024 that inflation has entered double digits, surpassing the government’s earlier estimate of 9%. The increase has affected both urban and rural populations, with rising costs across fuel, energy, transport, and food sectors.
A major factor behind the surge is the global increase in fuel prices, driven by geopolitical tensions involving the United States, Israel, and Iran. These developments have pushed up Brent crude oil prices, leading to higher petroleum costs domestically.
Fuel prices have had a significant impact, with petrol and diesel costs rising sharply. Motor fuel prices increased by around 40% year-on-year, while diesel saw an even steeper rise of up to 93%. Government-imposed levies on petroleum products have further added to the burden.
Energy costs have also surged, with electricity prices increasing by 33% and liquefied hydrocarbons by 63% compared to last year. Overall energy inflation stood at approximately 13.8% in urban areas and 13.6% in rural regions.
Food prices have continued to rise as well, with urban food inflation at 6.9% and rural at 7.3%. Essential items such as tomatoes, onions, and wheat products recorded significant increases, adding pressure on household budgets. Meanwhile, transport costs climbed by about 38%, compounding the impact of higher fuel prices.
The government had set an annual inflation target of 7.5%, but officials now expect this target may not be achieved due to ongoing volatility in global energy markets.
Under its agreement with the International Monetary Fund, Pakistan is also expanding financial assistance through the Benazir Income Support Programme, with the number of beneficiaries expected to increase to 10.2 million to support low-income households.
Economists caution that inflationary pressures may continue in the coming months, especially if fuel and energy prices remain unstable.
