Pakistan’s inflation has gotten worse because taxes and energy costs have gone up by a record amount. This suggests that interest rates may need to go up even more.
Consumer prices have gone up by 35.37 percent over the past year, according to data released by the statistics department on Saturday. This contrasts with a Bloomberg poll’s median expectation of a 34.8 percent rise and a 31.55 percent increase in February.
The new data may make it more likely that the State Bank of Pakistan will raise the target rate at its meeting on April 4. All but one of the 14 analysts who have been polled so far say that a rise will happen.
Last month, the central bank announced a 300-basis-point increase to 20 percent. This was done to control rising costs caused by a weaker currency, as well as to get a bailout from the International Monetary Fund, which is still uncertain. Taxes and energy prices were also raised.
The IMF has asked South Asia to get promises from Saudi Arabia and the United Arab Emirates before they will restart the bailout.
According to research, transportation expenses increased 54.94 percent year over year in March, while food inflation increased 47.15 percent. Apparel and footwear prices increased by 21.93 percent, while housing, water, and energy prices increased by 17.49 percent.
