Pakistan’s annual inflation in May reaches record-high of 37.97pc

ISLAMABAD: Pakistan’s annual inflation rose to 37.97 per cent year-on-year in May, the statistics bureau said in a report on Thursday, showing a continued uptick in the highest-ever inflation in the country.

The CPI stood at 36.4pc in April, which the bureau said at the time was the highest in their records.

The month-on-month rise in May was 1.58pc, the bureau said in a press release, adding vegetables, pulses and chicken prices posted the biggest increases.

Inflation has been on an upward trend since early this year after the government took painful measures as part of the fiscal adjustments demanded by the International Monetary Fund (IMF) to unlock stalled funding, which still hasn’t been disbursed.

The breakup of components suggested that food inflation in urban areas soared by a staggering 48.1% in May 2023 compared to May 2022. The rural areas fared no better with 52.4% price rise on a year-on-year basis.

In its Monthly Economic Outlook for May, the Ministry of Finance stated that “the inflation for the month of May 2023 may remain in the range of 34-36%”.

It added that improvement in the global supply chain will ease out domestic prices in the coming months.

With additional input from Reuters