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ISLAMABAD: Surging consumer inflation has mounted pressure on household budgets, with official data showing prices rose 11.7 per cent year-on-year in May, driven by sharp increases in energy and essential food prices.
The continued increase in monthly inflation, measured by the Consumer Price Index (CPI), has pushed it beyond the government’s earlier projection, mainly because of an unprecedented increase in the price of petroleum products.
In May, energy prices were slightly revised downward, but the impact on overall inflation was minimal. The Strait of Hormuz remains blocked, through which most of Pakistan’s energy imports are routed. Prime Minister Shehbaz Sharif has already stated that the weekly oil import bill has increased significantly.
The increase in prices was largely driven by a steep rise in transport charges, which surged by 36.78pc year-on-year. Month-on-month, it increased by 5.13pc in May.
