2023-12-17 17:03:32
Pakistan’s Inflation Decreases, But SPI at All-Time High
Inflation in Pakistan has decreased by 0.06 percent this week, according to the Pakistan Bureau of Statistics (PBS). However, the Sensitive Price Indicator (SPI) is at an all-time high in the country, reaching a six-month high of 43.16 percent in the week ended December 14.
This news comes as food prices continue to weigh heavily on consumers, with the main drivers of inflation being food items such as sugar, pulses, eggs, and rice. These items have seen a steady rise in prices throughout the year.
The State Bank of Pakistan (SBP) has kept its benchmark interest rate unchanged at 22 percent, as it awaits signs of easing inflationary pressures after the recent hike in gas prices. In response to high inflation, the SBP has increased interest rates by a total of 15 percentage points in the past two years.
However, despite the economic crisis, Pakistan’s stock markets have received a boost, driven by the increase in share prices of companies from various sectors. Some sectors have seen significant gains, with the stock market currently at historic highs. Bank stocks in Pakistan, as well as shares of companies operating in the oil and gas sector, have seen substantial increases.
While this may be good news for the economy, it does not bode well for the public, as the rise in stock market performance is a result of the high interest rates in the country.
It is important to note that the increase in inflation coincides with Pakistan’s agreement with the International Monetary Fund (IMF), which has had an impact on the economy.
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