According to a report by the Pakistan Bureau of Statistics (PBS), the Sensitive Price Indicator (SPI) showed an increase of 2.78% on a year-on-year basis for the week ending February 23, resulting in a total inflation rate of 41.54%. This marks the first time in over five months that inflation has exceeded 40%. The rise in prices was primarily observed in food items such as bananas, chicken, sugar, cooking oil, vegetable ghee, and tea. Meanwhile, non-food items like gas and cigarettes also saw a surge in prices. The report stated that out of 51 items, the prices of 33 (64.71%) items increased, while 06 (11.76%) items decreased, and 12 (23.53%) items remained stable.
The increase in inflation is occurring as Pakistan aims to meet the conditions of the International Monetary Fund (IMF) for the revival of the loan program. Prime Minister Shahbaz Sharif has cautioned that inflation could further escalate following the approval of the IMF program. To boost revenue generation in line with the preconditions of the IMF, the federal government has also approved a "mini-budget" that will impose additional taxes amounting to Rs170 billion.
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