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Inflation rose to 10-11% in June


PAKISTAN: Inflation rose in the country in June.

According to the Bureau of Statistics, inflation reached 8.59% in June 2020, compared to 8.2% in May and 8% in June 2019.

According to the statistics agency, the inflation rate in the financial year 2019-20 was 10.74 percent.

According to the statistics agency, prices of eggs rose by 21.7 per cent, tomatoes by 13 per cent, flour by 12 per cent, wheat by 10.83 per cent, spices by 5.4 per cent and vegetables by 4 per cent in June.

In June, on an annual basis, potatoes accounted for 72 per cent, lentils 71 per cent, dal mash 46 per cent, eggs 44 per cent, dal lentils 34 per cent, wheat flour 24 per cent and spices 29 per cent. Ghee became 24 per cent, tomato 13.9 per cent, cooking oil 20 per cent and furniture 10 per cent more expensive.

In addition, gas became 54% more expensive in one year, while construction materials prices rose 12% in one year.

Trade and industrial sectors, while demanding cuts to rate of interest , also believe the economy needs additional injection of Rs 3-4 trillion for full recovery.

However, with sharp economic slowdown, the revenue collection has also fallen in need of target this year, making further liquidity injection on such an out sized scale impossible for the govt .

The SBP has provided relief amounting to many billions within the sort of principal payments deferrals, debts rescheduling.

Pakistan witnessed the very best inflation within the world within the financial year 2020, forcing policy makers to extend rate of interest , the depository financial institution of Pakistan (SBP) said on Sunday. consistent with the Inflation Monitor for April issued by the SBP, Pakistan witnessed highest inflation not only as compared with the developed economies but also with emerging economies.

The SBP pushed up interest rates to chill down the inflationary pressure during the financial year but high rates proved counterproductive as they further increased inflation while the private sector stopped borrowing costly money hampering industrial growth and services.

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