With increased prices of energy products, the inflation in the country has risen to its highest level since April 2014.
According to the data from the Bureau of Statistics, inflation surged by 9.41% in March this year, leading the country into an era of stagflation. While on a month-on-month basis, the pace of inflation increased by 1.42% since February.
It was the highest since April 2014 when the Consumer Price Index had recorded inflation at 9.2%.
The inflation is close to reaching double digits, but the economic growth rate is slowing down and has slipped down to under 3 percent.
This, according to industry experts, will further send 400 million people below the poverty line and will leave another 1 million jobless this year.
The chart given below shows that the inflation surged exponentially in the first three months of 2019. However, the average inflation in the first nine months of the current fiscal year –from July 2018 to March 2019 – rose to 6.8 percent.
The average inflation is above the government’s annual target but is close to the range given by the central bank.
Note that the government is in talks with the International Monetary Funds (IMF) for a bailout package. If the agreement is made, the inflation is feared to rise further.