PAKISTAN’S headline inflation persisted at 27.4% year-on-year in August, official data showed, as a tumbling rupee and soaring bills blamed on an International Monetary Fund (IMF) bailout package hampered government efforts to rein in prices.

Pakistan was on the brink of default this summer, before IMF agreed to a lifeline deal on condition that the government cut subsidies that had cushioned living costs.

Since then, the rupee has crossed an historic threshold of 300 to the US dollar, while Islamabad has hiked petrol prices and electricity costs have spiked, sowing widespread discontent.

Prices rose 1.7% month-on-month in August, according to government statistics released yesterday, and the year-on-year figure of 27.4% was only one point shy of July’s, signalling little relief.

Last month, motor fuel cost 8% more than July, while water bills in urban areas rose more than 11% and the price of tomatoes was up as much as 82%.

Pakistan’s retailers said they would keep shops shuttered today in protest over the soaring costs, which have become a lightning rod for public anger ahead of the forthcoming general election. – AFP, September 2, 2023.