Pakistan's inflation soars to 47% fueled by high food prices; onion up 228%, wheat 120%

Pakistan's inflation stood at 45.65 in the week ending March 15, 2023 (Reuters file image)

Pakistan's retail inflation peaked to 47 percent on-year in the week ending March 22, 2023, on the account of skyrocketing food prices, as per the data shared by the Pakistan Bureau of Statistics (PSB).

The numbers also marked a week-on-week increase, as the inflation rate stood at 45.64 percent as on March 15, 2023.

The rate of essential commodities in the country has been on the rise, with the prices of staple food items like wheat flour surging by a staggering 120.66 percent on-year and onions by 228.28 percent, according to the data shared by the federal statistics body.

Other commodities of mass usage also jumped to a record high, with the prices of cigarettes rising by 165.88 percent, tea by 94.60 percent, basmati broken rice by 81.22 percent and eggs by 79.56 percent.

The energy prices also continued to soar further, as cooking gas charges climbed by 108.38 percent, diesel by 102.84 percent and petrol by 81.17 percent.

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Out of the 51 commodities whose prices were tracked by PSB, 26 items recorded a sharp surge, 13 recorded a decline and the rate of 13 others remained unchanged.

While the country's inflation has worsened, its foreign exchange reserves relatively improved over the past couple of weeks. In the week ending on March 17, the country's forex reserves climbed by $280 million to $4.598 billion. In comparison, it had dipped below the $3 billion mark in mid-February.

The Pakistan government is currently locked in a tight set of negotiations with the International Monetary Fund (IMF), over the release of the next tranche of aid as part of the $6.5 billion bailout package the country secured in 2019.

The IMF has laid down strict austerity measures, along with assurances on external financing, before releasing the next tranche of aid, local media reports said, citing persons privy to the negotiations.