Pakistan’s annual inflation rose to 37.97 per cent year-on-year in May, the statistics bureau said on Thursday, showing a continued uptick in the highest ever inflation in the country.

The reading is also higher than the finance ministry’s projection of 34-36pc for May, as stated in its monthly economic update and outlook, which said after hitting a peak this month, inflation would start descending owing to the ease in international commodity prices that would absorb the negative impact of currency depreciation.

The ministry attributed the potential reasons for the rising price levels to flood damages, disruptions in supply chains, devaluation brought by the macroeconomic imbalances and political uncertainty.

Previously, the highest ever percentage of year-on-year inflation was recorded in April at 36.4pc.

The month-on-month rise in May was 1.58pc, the bureau said in a press release, adding vegetables, pulses and chicken prices posted the biggest increases.

Inflation has been on an upward trend in Pakistan since early this year after the government took painful measures as part of the fiscal adjustments demanded by the International Monetary Fund (IMF) to unlock stalled funding, which still hasn’t been disbursed.

It is measured on the basis of a basket of products and services called the Consumer Price Index (CPI), in which items are divided into 12 major components with different weights.

According to data released by the statistics bureau today, the highest year-on-year increase was recorded in the categories of alcoholic beverages and tobacco (123.96pc), recreation and culture (72.17pc) and transport (52.92pc).

In the food group, items whose prices increased the most in May compared to last year were cigarettes, potatoes, wheat flour, tea, wheat and eggs and rice. In the non-food category, the items whose prices saw the highest increase were text books, stationery, motor fuels, washing soaps, detergents and match boxes.

The CPI recorded an increase of 35.09pc for urban areas on a year-on-year basis in May and 42.18pc for rural areas.

With the latest increase in CPI, average inflation has reached 29.16pc in 11 months (July to May) this fiscal year compared to 11.29pc in the previous year.

Opinion

Editorial

Race against time
Updated 09 Feb, 2025

Race against time

While some bright spots emerged at Breathe Pakistan moot, we must streamline our climate governance.
Open door
09 Feb, 2025

Open door

THE door is still open for talks, National Assembly Speaker Ayaz Sadiq has reminded the PTI. What matters, however,...
Football suspension
09 Feb, 2025

Football suspension

ONCE again, Pakistan has been ousted from the global football family. FIFA recently suspended the Pakistan Football...
A year later
Updated 08 Feb, 2025

A year later

A war of egos has been fought between a handful of individuals at the cost of the well-being of millions of ordinary Pakistanis.
Wheat decision
08 Feb, 2025

Wheat decision

THE federal decision to stop setting the minimum support price for wheat and cease the staple’s procurement...
Dhanmondi attack
08 Feb, 2025

Dhanmondi attack

HISTORY has shown that unless states deliver development and equal rights to all, disenfranchised people can target...