Pakistan’s Inflation rate increased sharply in April, reaching 10.9 percent. This is the highest level recorded in the past 20 months. The rise has been mainly driven by higher transport and fuel costs.
According to data released by the Pakistan Bureau of Statistics, the Consumer Price Index (CPI) rose significantly from 7.3 percent in March. This increase places Inflation above the target range set by the State Bank of Pakistan, which is between 5 and 7 percent.
The surge in prices came shortly after the central bank raised its policy rate. The rate was increased by 100 basis points to 11.5 percent. Officials said this move was necessary to control rising Inflation and stabilize the economy.
Authorities linked the sharp increase in prices to rising global oil costs. Tensions in the Middle East have affected energy supply chains. Disruptions near the Strait of Hormuz have added further pressure on fuel prices. As a result, transport costs have increased rapidly.
Transport inflation rose to 29.9 percent in April, compared to 12.5 percent in March. This is one of the biggest contributors to the overall rise in prices. Housing and utility costs also increased, reaching 16.8 percent from 11.5 percent a month earlier.
Food prices also showed an upward trend. Inflation in food and non-alcoholic beverages rose to 7.6 percent. This was up from 3.6 percent in March. The increase has added to the financial burden on households across the country.
On a month-on-month basis, CPI rose by 2.5 percent in April. This is the fastest monthly increase in nine months. In comparison, the rise was 1.2 percent in March.
The latest figures show that Pakistan is facing growing economic pressure. Rising energy costs and global uncertainties continue to impact local prices. Policymakers now face a challenge in controlling Inflation while supporting economic growth.
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Experts believe that external factors will remain a key risk in the coming months. If global oil prices stay high, Inflation may remain elevated. Authorities are expected to monitor the situation closely and take further measures if needed.
