Inflation has been affecting the overwhelming majority of people around the globe, including Pakistan, but it is the higher food prices – besides the increased power and gas tariffs as well as fuel prices – which are proving to be most disturbing aspect for them. At the same time, increase in food prices are sustaining and fuelling the overall inflation which in turn mean there won’t be any rate cuts soon – a continuation of the monetary tightening as advocated by top financial institutions and central banks. Hence, interest rates will stay at the record high levels in Pakistan and other developing nations as well as poorest countries which are worst affected by this trend amid currency devaluation and higher import costs due to the increase in commodity prices in global markets. Therefore, they will remain stuck in the vicious circle of higher inflation and interest rates with no hope for revitalising their economies. One must remember that the low-income groups form the largest share of population in developing and poor nations
Inflation has been affecting the overwhelming majority of people around the globe, including Pakistan, but it is the higher food prices – besides the increased power and gas tariffs as well as fuel prices – which are proving to be most disturbing aspect for them.
At the same time, increase in food prices are sustaining and fuelling the overall inflation which in turn mean there won’t be any rate cuts soon – a continuation of the monetary tightening as advocated by top financial institutions and central banks. Hence, interest rates will stay at the record high levels in Pakistan and other developing nations as well as poorest countries which are worst affected by this trend amid currency devaluation and higher import costs due to the increase in commodity prices in global markets. Therefore, they will remain stuck in the vicious circle of higher inflation and interest rates with no hope for revitalising their economies. One must remember that the low-income groups form the largest share of population in developing and poor nation
Inflation Interest Rates Food Prices Developing Nations Monetary Tightening
پاکستان تازہ ترین خبریں, پاکستان عنوانات
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