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Inflation rises in March as Middle East tensions push prices higher

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Inflation in Pakistan rose by 1.18% in March, pushing the annual rate to 7.30%, driven largely by higher food, fuel, and utility costs amid global tensions.

LAHORE (Dunya News) - Pakistan witnessed a rise in inflation during March, with prices climbing amid the economic impact of ongoing tensions in the Middle East, according to fresh data released by the Pakistan Bureau of Statistics.

The report showed that monthly inflation increased by 1.18 per cent, while the annual inflation rate reached 7.30 per cent. The average inflation rate for the period from July to March was recorded at 5.67 per cent.

Urban areas experienced a sharper rise, with inflation increasing by 1.34 per cent, compared to a 0.96 per cent rise in rural المناطق. In cities, chicken prices surged by 13 per cent and fruits by 11.25 per cent. Vegetables rose by 5.01 per cent, while pulses (particularly mash) increased by 2.78 per cent.

However, some relief was observed in key food items. Tomatoes became cheaper by 29.16 per cent and eggs by 17.96 per cent in urban areas. Similarly, potatoes and wheat recorded declines of 12.02 per cent and 5.48 per cent, respectively.

Non-food costs also contributed to inflationary pressure. Transport services in urban centres rose by 9.15 per cent, while motor fuel prices jumped significantly by 18.01 per cent. Electricity costs also increased by 5.08 per cent.

In rural areas, fruit prices increased by 14.68 per cent and vegetables by 6.84 per cent, while chicken and pulses also saw notable rises. Meanwhile, tomatoes and eggs recorded significant price declines.

On a yearly basis, transport fares increased by 12.49 per cent, while food and beverages rose by 3.55 per cent. Housing, electricity, gas and water costs surged by 11.50 per cent, and clothing and footwear prices went up by 5.80 per cent.

The report further highlighted that education costs rose by over 9 per cent annually, restaurant and hotel charges increased by 5.12 per cent, and healthcare expenses climbed by 7.36 per cent over the past year.

 

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