According to a recent Bloomberg report, Pakistan’s inflation rate has surged to a record high, with consumer prices rising by 36.4% in April 2023 from a year earlier, the highest since 1964. This is compared to a median estimate for a 37.2% increase. In July 2022, Pakistan’s headline inflation climbed to a 14-year high of 24.93% due to a weak currency stoking food and fuel prices, which boosted the odds of further interest rate hikes. In January 2023, Pakistan’s inflation rate accelerated to 27.6% from 24.5% in December 2022.
When comparing Pakistan’s inflation rate progress since 1947, Trading Economics data[3] shows that Pakistan’s inflation rate reached an all-time high of 37.81% in December 1973 and a record low of -10.32% in February 1959. Pakistan’s current inflation rate is significantly higher than its long-term average of 7.72% from 1957 to 2022.
Compared to its neighboring countries, Pakistan’s inflation rate is the highest in the region. According to the latest data available on the FT’s Global Inflation Tracker, Pakistan’s inflation rate is higher than India, Bangladesh, and Afghanistan. Sri Lanka, which has also been experiencing high inflation, had an inflation rate of 8.3% in March 2023, which is significantly lower than Pakistan’s inflation rate.
