scorecardresearchPakistan Inflation Hits 27.3% Before Full Impact of Floods

Pakistan Inflation Hits 27.3% Before Full Impact of Floods

Updated: 01 Sep 2022, 12:38 PM IST
TL;DR.

Pakistan’s inflation accelerated for a sixth straight month to hit a fresh record in August, with the deadly floods risk jolting prices further.

An handout picture released by the Saudi Interior Ministry on August 31, 2022, shows handcuffed suspects and bags of amphetamine pills on display at a warehouse in a undisclosed location. - Saudi officers thwarted an attempt to smuggle 47 million amphetamine pills into the country, state media reported, describing it as the largest ever drug trafficking operation in the kingdom. Six Syrians and two Pakistanis were arrested in a raid after the pills, concealed in a flour shipment, arrived at a dry port in the capital Riyadh. The report did not specify whether the pills were captagon -- the amphetamine wreaking havoc across the Middle East -- nor did it say where the pills came from. (Photo by SAUDI INTERIOR MINISTRY / AFP)

An handout picture released by the Saudi Interior Ministry on August 31, 2022, shows handcuffed suspects and bags of amphetamine pills on display at a warehouse in a undisclosed location. - Saudi officers thwarted an attempt to smuggle 47 million amphetamine pills into the country, state media reported, describing it as the largest ever drug trafficking operation in the kingdom. Six Syrians and two Pakistanis were arrested in a raid after the pills, concealed in a flour shipment, arrived at a dry port in the capital Riyadh. The report did not specify whether the pills were captagon -- the amphetamine wreaking havoc across the Middle East -- nor did it say where the pills came from. (Photo by SAUDI INTERIOR MINISTRY / AFP)

(Bloomberg) -- Pakistan’s inflation accelerated for a sixth straight month to hit a fresh record in August, with the deadly floods risk jolting prices further.

Consumer prices rose 27.26% last month from a year earlier, according to data released by the government Thursday. That compares with a median estimate for a 26.6% rise in a Bloomberg survey of economists and a 24.93% jump in July.

The inflation print comes as the nation faces a looming food crisis after the catastrophic flooding in the latter part of August that would require more imports, adding pressure to its fragile finances. Rice and cotton crops were damaged along with vegetables like onions and tomatoes.

Earlier this week, the South Asian nation secured $1.1 billion in loan from the International Monetary Fund to avert a default and pave the way for more funding. 

Meanwhile, further hikes in the fuel tax, as well as rise in power tariffs will continue to drive prices higher, according to Bloomberg Economics. Pakistan’s central bank kept rates steady last month after raising borrowing cost by 525 basis points this year.

First Published: 01 Sep 2022, 12:38 PM IST