Pakistan August Inflation Rises to 11.15 Percent

The Pakistan Bureau of Statistics reported that the consumer price index rose 11.15 percent in August from a year earlier. This figure exceeded the 10.9 percent median estimate from a Bloomberg survey and represents an increase from the 9.2 percent inflation rate recorded in July.

Food costs drove much of the increase, rising 13.89 percent, while housing and energy prices climbed 8.87 percent. Policymakers expressed concern that ongoing conflict in the Middle East could further elevate energy and freight costs for the import-dependent nation.

The State Bank of Pakistan maintained its benchmark interest rate at 11.5 percent in July, but officials are monitoring these inflationary trends ahead of the next policy decision scheduled for September 14. Despite these price pressures, Moody's Ratings and S&P Global Ratings recently upgraded Pakistan's sovereign credit rating, citing stronger fiscal positions and progress on economic reforms.