September’s inflation reaches 31.4 percent: PBS data

KARACHI: Pakistan’s inflation rate rose to 31.4 percent year-on-year in September from 27.4 percent in August, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.

The hike on a monthly basis was recorded at 2 percent in September, compared to 1.7 percent increase recorded in August.

On September 20, the Asian Development Bank (ADB) released outlook report for the month saying that inflationary pressures in the country are anticipated to persist in the short term, hovering around 29 percent. According to PBS, the recorded inflation has exceeded even ADB’s estimates.

Stock market stays bullish after holidays

According to State Bank of Pakistan (SBP) data, the interest rates are also at their highest in the current fiscal year, in a bid to control inflationary pressures. However, the recent adjustments in the fuel price can be considered as a major contributing factor to high inflation, despite SBP’s efforts.

ADB’s report, however, projects the inflationary pressures to decrease, reaching nearly 25 percent by the same time next year. This was corroborated by a recent report of the Ministry of Finance that expects the inflationary pressures to ease, starting from the beginning of the new calendar year.

Despite high inflation within the country, the Pakistani Rupee seems to be holding its parity against the US Dollar in the international market. This can primarily be attributed to the crackdown on the illegal foreign currency operators in the country.

Stock Market also showed signs of recovery on Monday after posting minor fluctuations and accumulative losses in the week before the holidays.