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.

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

Opinion

Editorial

New IMF programme?
Updated 03 Jun, 2023

New IMF programme?

The tranche’s release is crucial to the government’s plans to provide relief to the public in the budget.
Pemra’s edict
03 Jun, 2023

Pemra’s edict

IN an effort to mould the narrative, and prevent “undesirable” opinions from making it to the airwaves, Pemra ...
Crypto dreams
03 Jun, 2023

Crypto dreams

THOUGH the majority of the global financial community has wholeheartedly embraced the promise of cryptocurrencies,...
Balanced approach
Updated 02 Jun, 2023

Balanced approach

Only a legitimate government may be able to take the country out of its present crisis.
Rise in attacks
02 Jun, 2023

Rise in attacks

AN enduring security dilemma for Pakistan has been the issue of cross-border havens in Afghanistan for militants,...
Narrowing the gap
02 Jun, 2023

Narrowing the gap

THE rupee made a substantial recovery of 11.5 against the dollar in the open market a day after the State Bank...