FX.co ★ Pakistan Inflation Hits 7-Month High

Pakistan witnessed a notable surge in its annual inflation rate, climbing to 4.1% in July from 3.2% in June, reaching its highest point since December 2024. This increase was primarily fueled by a resurgence in housing and utilities prices, which rose to 3.6% from a previous decline of 3.3%, alongside a continued increase in the transport sector, rising to 2.7% compared to 0.6%. However, these gains were somewhat balanced by a deceleration in the price growth of food and non-alcoholic beverages, which slowed to 0.9% from 2.6%. Similarly, there was a moderation in the costs of clothing and footwear, declining to 8.4% from 9.0%; alcoholic beverages and tobacco, which decreased to 3.7% from 5.1%; furnishing and household equipment maintenance, which dipped to 3.3% from 3.7%; health services, down to 10.8% from 12.2%; and restaurants and hotels, which eased to 7.7% from 8.4%. Miscellaneous goods and services also saw a slight decline to 14.9% from 15.3%. Moreover, the recreation and culture sector experienced a further price drop, falling by 1.5% compared to a previous decrease of 1.0%. On a monthly scale, consumer prices saw a sharp rise of 2.9% in July, a significant increase from the 0.2% rise observed in June.