Consumer price inflation (CPI) in Pakistan hit a record high of 35.27 percent in March as compared to last year, new data released by Pakistan's Statistics Bureau (PSB) said on Saturday.
According to Arif Habib Limited, a brokerage firm in Islamabad, this is the highest year-on-year (y-o-y) inflation since the government started to maintain records in 1965. The year-on-year inflation for March is slightly higher than the month of February, when prices shot up by 31.5 percent.
The inflationary pressure in rural areas was slightly worse than in urban areas, as per statistics.
The CPI has been primarily driven by an increase in food and transport prices, which increased year-on-year by 50 and 54 percent, respectively.
Meanwhile, high food prices have prompted thousands of Pakistanis to approach government-run food centers and aid agencies for help. According to reports, crowding at these centers has resulted in stampedes at several locations, including in the southern city of Karachi, this week.
Around 16 people have died in these incidents.
Inflation Forecast to Remain High
A Monthly Economic Update and Outlook report released by the Ministry of Finance on Friday claimed that the inflation was projected to rise further owing to policy decisions which would further shoot up food and fuel prices and cause depreciation of the rupee.
Pakistan is negotiating the release of a $1.1 billion tranche of a $6.5 billion bailout package from the International Monetary Fund (IMF).
The IMF has asked Islamabad to strengthen its fiscal position through a "reduction in untargeted subsidies."
The government needs funds to shore up its foreign reserves, which at the moment are only enough to sustain just four weeks of imports.