2020Inflation in Pakistan rises to worldwide level, SBP releases alarming figures

Islam Abad(94 news) 2020 It turned out to be the worst for Pakistanis financially, with inflation at the highest levels in the world and policy makers being forced to hike interest rates.

Dawn News, in its review on inflation in April, said that during this period, Pakistan witnessed the highest inflation not only among the developing countries but also among the developed countries of the world.

According to the report, during the current financial year, the State Bank increased the interest rate to reduce inflationary pressure, but the high interest rate had the opposite effect and not only increased inflation, but the private sector stopped borrowing expensive money, hindering industrial growth and services.

According to the report, the inflation rate during January 12 At the highest level of the year ie 14.6 percent and in reaction to the rise in prices, the State Bank of India has raised interest rates 13.25 It was increased to percent.

However, due to the spread of the Corona virus, the entire economic scenario was reversed and due to the decrease in demand, State Bank only 3 Interest rate during the month 5.25 Forced to reduce to percent.

The announcement of the interest rate cut came as inflation eased during May 8.2 percentage which was lower than the estimate of State Bank.

According to the detailed graph of State Bank of Inflation Survey, compared to developing economies such as China, Thailand, Bangladesh, India and Sri Lanka, Pakistan's inflation has declined since the pandemic.

Inflation in the period from July to May of the current financial year of State Bank 1.94 until 11 It remained below the percentage estimate, which is likely to decrease further during June.

The previous 2 During the month the Govt 2 A reduction in the prices of petroleum products has reduced the cost of production and transportation and has also reduced inflation.