The purchasing power index (PRI) in Pakistan continued to decline, reaching its lowest level in October 2021 and falling from 85.6 in November 2020 to 79 in October 2021.
In January 2021, this PRI had improved when it reached 86.4, but in the coming months it continued its downward trend until October 2021, when it peaked at 79.
Annual inflation was 9.2% in October 2021 and monthly inflation was 1.9%, which represents a significant increase in prices and a decline in purchasing power to its lowest point in the period. These inflationary pressures are caused by the wide gap between supply and demand, as well as the rise in energy prices caused by the rise in world oil prices.
Persistent high levels of inflation in Pakistan is due to rising supply-demand gap primarily from monetary expansion, higher Remittance’s inflow, lower productivity and rising petroleum prices.
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