The consumer price index (CPI) for Pakistan increased by 21.3 percent from a year earlier in June, according to the nation’s statistics department on Friday. This is the highest level in 13 years.
The CPI was reported to be 13.8% year-over-year in May.
Since May’s end, fuel prices have increased by roughly 90% as a result of the government’s elimination of expensive fuel subsidies.
In order for Pakistan to continue receiving help from a $6 billion package agreed upon with the International Monetary Fund (IMF) in 2019, fuel prices have increased four times since May 26.
As part of an agreement to remove subsidies in the oil and electricity sectors to decrease the fiscal deficit before the annual budget is published next month, the price increase has been the main focus point of contention between Pakistan and the IMF.
In order to calm popular tempers in the face of double-digit inflation during his final days in office, ousted Prime Minister Imran Khan gave the subsidy, which the IMF claimed violated the terms of the 2019 agreement.