Consumer prices in Pakistan increased by about 25% in July, the highest increase since October 2008, as citizens faced a double-edged sword of rising food, energy prices of gadgets, with transport inflation reaching a record 65%.
The annual inflation rate has jumped to 24.9% in July 2022, according to the Pakistan Bureau of Statistics, exceeding the Ministry of Finance’s forecast of roughly 21% inflation four days earlier.
It is the highest increase in consumer prices since October 2008, despite the rupee falling to a record low of Rs239 per dollar in previous months. This will lead to a significant price shock in the coming months.
In the face of increasing prices, the government authorized the Federal Board of Revenue to produce a Rs30 billion mini-budget to compensate for the additional grant of the same amount agreed by the Economic Coordination Committee of the Cabinet for Pakistan State Oil.
According to the most recent Adobe Digital Economy Index research, prices online are increasing, with a 3.1% year-over-year increase in the cost of items on the web in July. As the digital economy grows, internet pricing trends will have a bigger influence on how we calculate and comprehend an inflation as a whole.
The shortage of components, particularly semiconductors/chips, since 2021 has about 10% raised the pricing of key consumer electronics items such as laptops and smartphones.
According to industry analysts, price increases are unlikely to decline soon since the supply chain will need more time to recover from the recent two years of disruption.
According to report, prices of gadgets have risen due to a chip shortage, an increase in supply costs, and brand decisions to bring mid-to-premium products particularly in the PC segment (IDC).