According to Inflation Monitor-August 2017, Karachi is the cheapest biggest city of Pakistan amongst the five major cities in Pakistan. The inflation rate consumer price index inflation (CPI) recorded in Karachi is 1.7% in August 2017. It was 3.3% the previous year.
Lahore was the most costly city in Pakistan among the five biggest cities. State Bank of Pakistan issued a detailed report called Inflation Monitor-August 2017. SBP said, “Among these five cities, the lowest inflation was observed in Karachi at 1.7 percent, while the highest inflation was observed in Lahore at 5.1 percent,” the SBP said.
The inflation in food in Karachi is 0.7% while on non-food items it is 2.5%. Lahore recorded the highest food inflation of 4% while on non-food items the inflation was 6%.
The reason for Karachi’s inflation rate going down was not discussed by SBP. This though is known by all that Karachi is the biggest trading and financial hub of the country which would have contributed to its low inflation rate.
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Islamabad and Peshawar were also a part of high inflation cities while Quetta’s inflation rate declined. Islamabad inflation rate was recorded, 5% while Peshawar’s was 2.1%.
At one point the people inhabiting in Karachi should be proud that the inflation rate has dropped, they need to also consider the fact that Karachi was ranked the least livable city around the world by Economist Intelligence Unit. In the listing of 140 cities, Karachi was given 134th position, only better than Port Moresby, Dhaka, Tripoli, Lagos, and Damascus.