Pakistan inflation could rise to 13.5pc, says IMF
Pakistan’s inflation rate could soon rise as high as 13.5 per cent, according to the International Monetary Fund (IMF).
The country’s inflation rose to a four-month high in August as devastating floods forced food prices higher. Core inflation rose to a higher-than expected 12.5 per cent, as the consumer price index increased 2.5 per cent from July.
Analysts had expected the central bank to wait and see until the release of a damages assessment report, due to be released in mid-October, but with inflation higher than expected, there are fears that the central bank may hike the policy rate.
The IMF has pledged $451m (£287m) in aid to the stricken nation, which will be used to plug the gap in public spending and shore up its flagging currency.