Inflation climbs to 26.6% on food and fuel costs

The Statistics Bureau of Pakistan (SBP) Tuesday said that consumer inflation in October accelerated to 26.6% in comparison to 2021 same month, reported 24NewsHD TV channel. 

The inflation has increased by 4.7% prices from the previous month.

Pertinent to note that in September, the consumer price index rose 23.2% on year, slowing from a decades-high 27.3% in August. 

As per the SBP, the rise in consumer prices in October from last month was boosted mainly by electricity and food prices, the bureau said in a statement. The higher CPI from October last year was due to the rising costs of food and fuel.

A number of factors are behind the inflation percentage increase including falling foreign exchange reserves, a depreciating currency, widening current account deficit and devastating floods in August that killed more than 1,700 people.

Also, the State Bank of Pakistan kept the main policy rate unchanged at 15%, projected inflation after the floods to be on the higher side of a prior estimate of 18%-20% in FY2022-23.

Reporter Waqas Azeem