Amid rising inflation, millers in Pakistan have once again raised flour prices by 7 PKR and 10 PKR in fine and super fine (maida) flour. After the hike, the new No. 2.5 flour rate was set at 106 PKR per kg while fine and super fine flour is now at 114 PKR, Dawn reported citing a local miller.
The miller added that the new rate for the 10 kg bag of flour has been increased from PKR 995 to PKR 1,065. Meanwhile, Rauf Ibrahim Group of Karachi Wholesalers Grocers (KWGA) said the wheat tariff has also been increased from PKR 8,500 to PKR 9,200 per 100 kg. bag, Dawn reported.
Last week, the Pakistan Bureau of Statistics (PBS) said inflation as measured by the Sensitive Price Index (SPI) rose sharply in the previous week, hitting a record 45.5% year-on-year in September, the highest level for a decade. PBS said the SPI-based inflation rate jumped to 1.31% in the previous week from last week, due to a spike in vegetable prices, as the country faces to the brunt of catastrophic flooding that affected more than 33 million lives, Geo news reported.
It was also the third week in a row that the inflation rate has steadily increased, largely due to supply chain disruption amid floods that have sent the price of essential goods skyrocketing. The latest data showed that the average prices of 31 essential items, onions, tomatoes, eggs and other items rose over the past week. The prices of three items, including vegetable ghee, fell. Meanwhile, tariffs for 17 essential goods remained unchanged, Geo news reported.
Meanwhile, Prime Minister Shehbaz Sharif’s coalition government, which took power in April 2022, is grappling with multiple political and economic crises. Its current account deficit soared to $17.4 billion, or 4.6% of the size of the economy in the last fiscal year, due to the widening trade deficit. A growing current account deficit amid depleted dollar inflows from multilateral and bilateral lenders and dwindling foreign investment have put enormous pressure on foreign exchange reserves and the rupee in recent months.
It fueled rapid inflation, forced the State Bank to raise borrowing costs to a multi-year high, and eroded investor confidence in the economy. (ANI)
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)