Inflation rose to 12.7 per cent year-on-year, the highest level in nine years mainly driven by an increase in prices of food items, the Pakistan Bureau of Statistics (PBS) said in a report.

<a href="https://www.wionews.com/pakistan">Inflation</a>, measured by the Consumer Price Index (CPI), edged up by 1.3 per cent over the previous month after the PBS revised its calculation methodology by setting the new base year 2015-16 instead of the previous 2007-08 financial year, Dawn reported.

In a statement, the Finance Ministry claimed that inflation would come down from the next month, however, without divulging further details on how they figured this out.

The data released on Wednesday showed that higher prices of food items have been the largest driver in overall inflation in November.

It has also been observed that the prices of essential food items are higher in rural areas than in urban areas, the report said.

Food inflation in urban areas rose by 16.6 per cent in November on a yearly basis and 2.4 per cent on a monthly basis and that in rural areas by 19.3 per cent and 3.4 per cent, respectively.

Similarly, non-food inflation in urban centres was recorded at 9.6 per cent year-on-year, while it was 9 per cent in rural areas.

The rise in non-food inflation is mainly driven by an increase in oil prices over the past few months and a combined impact of the depreciation of the exchange rate.

Economist Ashfaque Hasan Khan, however, believes that inflation is likely to be "more than 13 per cent in December, and the expected increase in inflation numbers would be based on a hike in energy prices, currency devaluation and high-interest rates."

"Higher prices of imported items and raw materials due to the currency devaluation are being passed on to consumers. Companies are also passing on the higher costs of working capital amid increased interest rates to the consumers," Khan was quoted as saying by Geo News.

The central bank kept its benchmark interest rate unchanged at 13.25 per cent in November, as expected, to prevent food inflation, nearing the top of its target range, from further spreading.

State Bank of Pakistan Governor Reza Baqir was recently quoted as saying that rising inflation "has partly been the result of the need to restore competitiveness in the exchange rate, increased administered prices to reduce fiscal deficits in the public sector, and unforeseen food supply disruptions."

Inflation rose to 12.7 per cent year-on-year, the highest level in nine years mainly driven by an increase in prices of food items, the Pakistan Bureau of Statistics (PBS) said in a report.

Inflation rose to 12.7 per cent year-on-year, the highest level in nine years mainly driven by an increase in prices of food items, the Pakistan Bureau of Statistics (PBS) said in a report. Inflation, measured by the Consumer Price Index (CPI), edged up by 1.3 per cent over the previous month after the PBS revised its calculation methodology by setting the new base year 2015-16 instead of the previous 2007-08 financial year, Dawn reported. In a statement, the Finance Ministry claimed that inflation would come down from the next month, however, without divulging further details on how they figured this out. The data released on Wednesday showed that higher prices of food items have been the largest driver in overall inflation in November. It has also been observed that the prices of essential food items are higher in rural areas than in urban areas, the report said. Food inflation in urban areas rose by 16.6 per cent in November on a yearly basis and 2.4 per cent on a monthly basis and that in rural areas by 19.3 per cent and 3.4 per cent, respectively. Similarly, non-food inflation in urban centres was recorded at 9.6 per cent year-on-year, while it was 9 per cent in rural areas. The rise in non-food inflation is mainly driven by an increase in oil prices over the past few months and a combined impact of the depreciation of the exchange rate. Economist Ashfaque Hasan Khan, however, believes that inflation is likely to be "more than 13 per cent in December, and the expected increase in inflation numbers would be based on a hike in energy prices, currency devaluation and high-interest rates." "Higher prices of imported items and raw materials due to the currency devaluation are being passed on to consumers. Companies are also passing on the higher costs of working capital amid increased interest rates to the consumers," Khan was quoted as saying by Geo News. The central bank kept its benchmark interest rate unchanged at 13.25 per cent in November, as expected, to prevent food inflation, nearing the top of its target range, from further spreading. State Bank of Pakistan Governor Reza Baqir was recently quoted as saying that rising inflation "has partly been the result of the need to restore competitiveness in the exchange rate, increased administered prices to reduce fiscal deficits in the public sector, and unforeseen food supply disruptions."

Consumer inflation hits 9-year-high in Pakistan

Pakistan's trade deficit marginally contracted to $11.8 billion in the first four months of the current fiscal year on the back of almost flat growth in imports for the fourth consecutive month while the pace of increase in exports remained modest despite numerous rounds of currency depreciation.

The Pakistan Bureau of Statistics (PBS) said the $11.8 billion deficit, recorded in July-October FY19, was nearly 2 per cent or $237 million lesser than in the same period last fiscal, The Express Tribune reported on Friday.

Exports in the July-October period increased 3.52 per cent to $7.3 billion. In absolute terms, the export receipts rose $248 million, but the pace of increase was slower than the preceding year.

The value of imported goods stood at $19.1 billion, which was only 0.6 per cent or $11 million higher than the import bill in the corresponding period of previous fiscal year.

Exports were 261 per cent less than the value of imports. Imports of the country have started to ease due to the State Bank of Pakistan's (SBP) numerous policy and administrative measures. Additionally, the federal government has imposed heavy regulatory duties on imported goods.

Over the past 10 months, the SBP has let the rupee depreciate by 26.6 per cent to 133.7 against the US dollar in a bid to curtail the current account deficit which is presently Pakistan's biggest challenge.

Owing to the slowdown in imports, the current account deficit narrowed to $3.7 billion in first quarter (July-September) of the current fiscal year.

However, despite a steep fall in the value of the currency, Pakistani exporters are unable to take full advantage of the situation because of their failure to diversify shipments. The government voices hope that exports will bounce back and register average growth of 18 per cent compared to last year's level.

China has offered a $1 billion duty-free facility to Pakistan for enhancing its exports. As compared to over $15 billion worth of imports, Pakistan exports only $1.2 billion worth of goods to China, which is not commensurate with the potential. Bilateral trade is regulated under the 2006 Free Trade Agreement.

Pakistan does not have exportable surplus and there is a high probability that the country will avail the $1 billion facility by exporting additional quantity of rice and some other agricultural produce.&nbsp;

Pakistan's trade deficit marginally contracted to $11.8 billion in the first four months of the current fiscal year on the back of almost flat growth in imports for the fourth consecutive month while the pace of increase in exports remained modest despite numerous rounds of currency depreciation.

Pakistan's trade deficit marginally contracted to $11.8 billion in the first four months of the current fiscal year on the back of almost flat growth in imports for the fourth consecutive month while the pace of increase in exports remained modest despite numerous rounds of currency depreciation. The Pakistan Bureau of Statistics (PBS) said the $11.8 billion deficit, recorded in July-October FY19, was nearly 2 per cent or $237 million lesser than in the same period last fiscal, The Express Tribune reported on Friday. Exports in the July-October period increased 3.52 per cent to $7.3 billion. In absolute terms, the export receipts rose $248 million, but the pace of increase was slower than the preceding year. The value of imported goods stood at $19.1 billion, which was only 0.6 per cent or $11 million higher than the import bill in the corresponding period of previous fiscal year. Exports were 261 per cent less than the value of imports. Imports of the country have started to ease due to the State Bank of Pakistan's (SBP) numerous policy and administrative measures. Additionally, the federal government has imposed heavy regulatory duties on imported goods. Over the past 10 months, the SBP has let the rupee depreciate by 26.6 per cent to 133.7 against the US dollar in a bid to curtail the current account deficit which is presently Pakistan's biggest challenge. Owing to the slowdown in imports, the current account deficit narrowed to $3.7 billion in first quarter (July-September) of the current fiscal year. However, despite a steep fall in the value of the currency, Pakistani exporters are unable to take full advantage of the situation because of their failure to diversify shipments. The government voices hope that exports will bounce back and register average growth of 18 per cent compared to last year's level. China has offered a $1 billion duty-free facility to Pakistan for enhancing its exports. As compared to over $15 billion worth of imports, Pakistan exports only $1.2 billion worth of goods to China, which is not commensurate with the potential. Bilateral trade is regulated under the 2006 Free Trade Agreement. Pakistan does not have exportable surplus and there is a high probability that the country will avail the $1 billion facility by exporting additional quantity of rice and some other agricultural produce.

Pak trade deficit shrinks to $11.8 billion in first four months of current fiscal

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Consumer inflation hits 9-year-high in Pakistan

Pak trade deficit shrinks to $11.8 billion in first four months of current fiscal