Pakistan's Inflation Driven by Demand, Not Costs, Study Finds
Inflation in Pakistan has been on the rise, reaching 20.77 in 2010. To understand if this inflation is due to higher production costs or increased demand, researchers analyzed data from 1990-2010. The study found that Pakistan is experiencing demand-pull inflation, driven by factors like interest rates, money supply, and foreign aid. This type of inflation explains about 43.74% of the inflation in Pakistan.