The report also points out that while the currencies of developing economies in Asia have marginally depreciated, Pakistan's currency has seen a steep devaluation of 30%
US Federal Reserve in its September policy meeting left the key interest rate unchanged at 5.25-5.50 per cent but cautioned it may go for additional tightening of monetary policy
However, core inflation, which strips out volatile food and energy prices, continued to slow, CNN reported citing data from the Bureau of Labor Statistics
Retail inflation declined to 6.83 per cent in August after touching a 15-month high of 7.44 per cent in July, mainly due to softening prices of vegetables, but still remains above the Reserve Bank's comfort zone.
Both monetary and fiscal policy must work in tandem to contain the inflationary spiral with timely supply-side interventions to ‘limit the severity and duration of such shocks’
The Consumer Price Index (CPI) based inflation was at 7.44 per cent in July and at 7 per cent in August 2022, as per the data released by the National Statistical Office (NSO) on Tuesday.
Egypt's annual inflation rate hit a new record high in August, as the cash-strapped country continues to battle price hikes and a depreciating currency
Pakistan's inflation rate remained over the target in August at 27.4 per cent as reforms outlined as requirements for an IMF loan make it more difficult to control price pressures
Protests in Pakistan continue to gain momentum with each passing day as hundreds of thousands of locals burn their electricity bills, rejecting the imposed high tariffs and taxes