https://arab.news/jfjaf
- Economists say widespread crop damage could quickly feed into higher food inflation
- Floods have killed 35 and affected over 2.3 million, swamping more than 2,200 villages
KARACHI: Pakistan’s consumer price inflation slowed to 3.0 percent year-on-year in August from 4.1 percent in July, data showed on Monday, though economists warned that weeks of flooding in Punjab province could put food prices under renewed pressure.
The Finance Ministry last week projected August inflation in a 4.0-5.0 percent range — down from double-digit annual readings through much of last year — citing stable macroeconomic conditions, improved manufacturing and agricultural support.
But the ministry warned that extreme weather posed a threat to farm sector growth, even at a time of improved agricultural credit and fertilizer supplies.
Authorities in Punjab, the country’s breadbasket, said more than 2.3 million people were affected and 35 killed in the floods that swamped more than 2,200 villages after heavy monsoon rains.
Economists say widespread crop damage could quickly feed into higher food inflation, which had eased in August on account of lower perishable prices.
On a month-on-month basis, consumer price inflation fell 0.6 percent in August, the statistics bureau said.