Islamabad (Commerce Desk) The country’s inflation rate returned to double digits after a gap of one month, with the annual inflation rate under the Consumer Price Index recorded at 11.2 percent in August.
The inflation rate was 9.2 percent in July; however, a significant increase in wheat and flour prices, high petroleum product prices, and higher transport fares pushed inflation back into double digits.
According to the Pakistan Bureau of Statistics, an increase in inflation was observed in both urban and rural areas in August, while prices also increased in several sectors, including food and energy.
Due to the government passing on the full burden of fuel prices in the international market to consumers and imposing various taxes on petroleum products, motor fuel prices increased by around 25 percent in August compared with the same month last year.
Various taxes of around Rs116 per liter on petrol and Rs101 on high-speed diesel are being collected, including the petroleum levy, carbon levy, and customs duty.
The Ministry of Finance had forecast that the inflation rate would remain between 10 and 11 percent in August; however, the actual rate was slightly higher than the estimate.
According to the Ministry of Finance, inflation is likely to remain elevated in the short term as recent price pressures and fluctuations in global prices of essential commodities and energy are being transmitted to the domestic economy.