The Pakistan Bureau of Statistics said on Tuesday that inflation rose to a record high of 36.4 per cent in the year to April driven mainly by food prices, the highest rate in South Asia and up from March’s 35.4pc.

Rural areas recorded food inflation of 40.2pc, the bureau told Reuters. Food inflation for both rural and urban areas reached 48.1pc, the highest since FY16 when the bureau started recording the categories separately.

Prices rose 2.4pc in April from March, the bureau said in a press release.

“The higher reading was expected over the hyperinflation in the food segment,” said Amreen Soorani, head of research at investment company JS Capital.

“While the trend may continue for a couple of months more, the base effect is likely to kick in from June 2023, slowing the pace.”

The finance ministry said headline inflation was expected to remain at elevated levels in the months to come, despite contractionary monetary policy by the central bank.

Pakistan has been in economic turmoil for months with an acute balance of payments crisis while talks with the International Monetary Fund (IMF) to secure $1.1 billion as part of a $6.5bn bailout have not been successful.

Measures have been taken to try to secure the funding, including removing caps on the exchange rate, resulting in a depreciating currency, increasing taxes, removing subsidies and raising key interest rates to a record high of 21pc.

The finance ministry said the successful completion of talks with the IMF will eventually attract more capital inflows, stabilise the exchange rate and alleviate inflationary pressures.

Persistently high inflation has resulted in major lifestyle and consumption changes, with a greater number of people seeking help.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Closed doors
Updated 08 Jan, 2025

Closed doors

The nation’s fate has been decided through secret deals for too long, with the result that the citizenry has become increasingly alienated from the state.
Debt burden
08 Jan, 2025

Debt burden

THE federal government’s total debt stock soared by above 11pc year-over-year to Rs70.4tr at the end of November,...
GB power crisis
08 Jan, 2025

GB power crisis

MASS protests are not a novelty in Pakistan, and when the state refuses to listen through the available channels —...
Fragile peace
Updated 07 Jan, 2025

Fragile peace

Those who have lost loved ones, as well as those whose property has been destroyed in the clashes, must get justice.
Captive power cut
07 Jan, 2025

Captive power cut

THE IMF’s refusal to relax its demand for discontinuation of massively subsidised gas supplies to mostly...
National embarrassment
Updated 07 Jan, 2025

National embarrassment

The global eradication of polio is within reach and Pakistan has no excuse to remain an outlier.