Pakistan inflation rises 21.3 pc in June

The consumer price index CPI of Pakistan rose 21.3 per cent from a year ago, the statistics bureau said on Friday for the South Asian nation's highest inflation in 13 years.

The CPI was up 13.8 per cent on the year in May. The month-on-month rise in June was 6.3 per cent.

Fuel prices have gone up by 90 per cent since May after the government scrapped costly fuel subsidies in a bid to cut its fiscal deficit and secure a resumption of an IMF bailout programme.

Transport saw its index increase by 62.2 per cent in June, a gain of 62.2 per cent on the year.

The price index for food items, which make up about a third of the CPI basket, rose 25.9 per cent.

Pakistan has struggled with high inflation for the last few months. The CPI index rose 12.1 per cent for the financial year 2021 -- 22, which ended in June, compared to 8.9 per cent in the last financial year.

Despite rising global oil prices, subsidies for fuel and power were adopted by the government of previous Prime Minister Imran Khan in March 2022, as he faced mounting discontent over his handling of the economy and rising inflation.

He was ousted in April and the new government began reversing the costly subsidy that it brought on par with international prices late last month.

The price of fuel was hiked further on Thursday, with the cash-strapped government imposing a petroleum levy in its attempt to reduce the fiscal deficit.

The levy, which officials expect to rise further, was part of the fiscal consolidation measures agreed with the IMF to resume the bailout programme.