Pakistan inflation rose to a two-year high after the Iran war pushed up energy
import costs, the Pakistan Bureau of Statistics said. Headline CPI was up 11.7%
YoY in May. Higher energy prices are amplifying inflation and
balance-of-payments pressure for Asian fuel importers, prompting emergency
measures to stabilize the currency and limit economic fallout. The State Bank of
Pakistan raised rates in April — its first hike in three years — and will review
policy at a meeting on June 15. Government data show gasoline and diesel prices
are about 48% and 38% above pre-war levels.
