Pak consumer prices hit 33-yr high
Farhan Bokhari | Friday, 13 June 2008
FT Syndication Service
ISLAMABAD: Pakistan's inflation rate surged to its highest level in more than 30 years in May, new data showed last Wednesday as the government released a budget that includes a big reduction in fuel and food subsidies.
Consumer prices in Pakistan rose at an annual rate of 19.3 per cent in May, up from 17.2 per cent in April, on the back of soaring fuel and food prices, which rose at an annual rate of 28.5 per cent in May.
The increase took Pakistan's inflation rate to its highest since 1975 when annual average prices rose by 26.83 per cent. Analysts said monthly data started being released in 1991 and therefore it was difficult to make an exact comparison of inflation figures.
But consumer prices are expected to rise further as the government slashes subsidies to tackle its fiscal deficit.
Last Wednesday's budget called for total government subsidies on fuel oil, electricity, fertilisers and food items to be reduced by more than a quarter to Rs295.2bn ($4.4bn, euro2.8bn,
ISLAMABAD: Pakistan's inflation rate surged to its highest level in more than 30 years in May, new data showed last Wednesday as the government released a budget that includes a big reduction in fuel and food subsidies.
Consumer prices in Pakistan rose at an annual rate of 19.3 per cent in May, up from 17.2 per cent in April, on the back of soaring fuel and food prices, which rose at an annual rate of 28.5 per cent in May.
The increase took Pakistan's inflation rate to its highest since 1975 when annual average prices rose by 26.83 per cent. Analysts said monthly data started being released in 1991 and therefore it was difficult to make an exact comparison of inflation figures.
But consumer prices are expected to rise further as the government slashes subsidies to tackle its fiscal deficit.
Last Wednesday's budget called for total government subsidies on fuel oil, electricity, fertilisers and food items to be reduced by more than a quarter to Rs295.2bn ($4.4bn, euro2.8bn,