The annual inflation rate in Pakistan increased by 24.9% in July 2022, the highest since 2008, from 21.3% in the previous month, amid a continuous slide in the local currency and falling foreign exchange reserves.

The Pakistan Bureau of Statistics, in its report released on Monday, said that CPI-based inflation increased by 4.3% on a month-on-month basis in July 2022, compared to an increase of 6.3% in June 2022 and an increase of 1.3% in July 2021.

The report revealed that the CPI-based inflation in urban areas increased by 23.6% on a year-on-year basis in July 2022 compared to an increase of 19.8% in the previous month and 8.7% in July 2021 while it increased by 4.5% on a month-on-month basis in July 2022, compared to an increase of 6.2% in the previous month and an increase of 1.3% in July 2021.

In rural areas, inflation surged by 26.9% on a year-on-year basis in July 2022 compared to an increase of 23.6% in the previous month and 8.0% in July 2021. It increased by 4.2% on a month-on-month basis in July 2022 as compared to an increase of 6.6% in the previous month and an increase of 1.4% in July 2021, the report said.

Transport prices recorded the biggest increase surging by 64.7% in July 2022 while food prices rose by 28.8% on a year-on-year basis.

The rupee fell more than 14% in July amid concern that political uncertainty may delay the IMF bailout and falling foreign exchange reserves.