The cost of living in Pakistan jumped by almost 25% in July, the largest increase since October 2008, as residents dealt with the dual challenges of rising food, energy, and gadget prices as well as record-high transportation inflation of 65%.
According to the Pakistan Bureau of Statistics, the annual inflation rate increased to 24.9% in July 2022, above the Ministry of Finance’s prediction of around 21% inflation four days earlier.
Despite the rupee hitting a record low of Rs239 per dollar in prior months, it is the largest increase in consumer costs since October 2008. In the upcoming months, this will result in a severe price shock.
The government gave the Federal Board of Revenue permission to create a Rs 30 billion mini-budget in response to rising prices in order to make up for the additional grant of the same amount agreed upon by the Economic Coordination Committee of the Cabinet for Pakistan State Oil.
The cost of goods on the internet increased by 3.1% year over year in July, according to the most recent Adobe Digital Economy Index data. Internet pricing trends will have a greater impact on how we calculate and understand overall inflation as the digital economy expands.
The price of important consumer electronics products like laptops and smartphones has increased by about 10% since 2021 due to the shortage of components, particularly semiconductors/chips.
Industry analysts predict that price increases won’t go down anytime soon because the supply chain will take longer to recover from the recent two years of disruption.
A shortage of chips, rising supply costs, and brand decisions to introduce mid-to-premium items, notably in the PC market, are reportedly to blame for the increase in the price of gadgets (IDC).