New government data says that despite the rupee recovering significantly against the dollar, inflation actually went up, rising past 30% again. Annual inflation rose to 31.4% in September against 27.4% in August, and was up by 2% month-on-month in September, compared to 1.7% in August. Given that petroleum products — which are almost entirely imported — have a massive impact on inflation, a successful crackdown could have very quick results. A large chunk of inflation earlier this year was also attributed to the tough IMF conditions. Currently at record highs to help check inflation, the high rate also discourages investment, which is critically needed to meet broader economic goals.

Source: The Express Tribune October 09, 2023 15:47 UTC