Consumer prices in Pakistan rose about 25% in July, the highest rise since October 2008. Citizens faced a double-edged sword of rising energy prices for groceries and gadgets, and transport inflation reached a record 65%.
According to the Pakistan Bureau of Statistics, annual inflation jumped to 24.9% in July 2022, beating the Finance Ministry’s forecast of around 21% four days ago.
This is the first rise in consumer prices since October 2008, even though the rupee fell to 239 rupees per dollar last month. This will lead to significant price shocks in the coming months.
Faced with rising prices, the government has recommended that the Federal Revenue Service prepare a mini-budget of Rs 300 crore to supplement an additional subsidy of the same amount agreed by the Economic Coordination Board of the Cabinet of Pakistan National Oil. approved.
Online prices are on the rise, with the cost of items on the web increasing 3.1% year-over-year in July, according to the latest Adobe Digital Economy Index study. As the digital economy grows, Internet pricing trends will have a major impact on how we calculate and understand inflation as a whole.
Shortages of components, especially semiconductors/chips, have caused the prices of major consumer electronics such as laptops and smartphones to rise by about 10% from 2021 onwards.
Industry analysts say it is unlikely that price gains will ease any time soon, as supply chains will take longer to recover from the turmoil of the past two years.
According to the report, gadget prices are rising due to chip shortages, rising supply costs, and brands’ decision to offer mid-to-premium offerings, especially in the PC segment (IDC).
