Inflation in February 2022 was 12.2pc, down from 13.0pc in the previous month and 8.7pc in February 2021, according to figures issued by the Pakistan Bureau of Statistics (PBS) on Tuesday, although remaining in the double digits based on the Consumer Price Index (CPI). 8MFY22 average inflation is now 10.52 percent YoY, up from 8.25 percent in the 8MFY21 period, according to a note from the Arif Habib Limited brokerage house” (AHL). The Pakistan Tehreek-e-Insaf (PTI) government has struggled with inflation as the country’s current account deficit continues to worsen due to rising global commodity costs, particularly oil. After oil hit $100 a barrel, Prime Minister Imran Khan surprised many by lowering the pricing of energy items in a wide-ranging address to the nation on Monday. A no-confidence motion in parliament is expected to be proposed by the opposition as well, in order to force his resignation. With inflation reaching its highest level in two years and other measures like a reduction in power tariffs, Khan’s speech was largely interpreted as an attempt to appease the population. After an up and down start to the week, oil futures gained on the international market on Tuesday morning amid concerns about Russian supply disruptions following Moscow’s incursion into Ukraine. In February 2022, urban CPI inflation climbed by 11.5pc year over year, compared to a rise of 13.0pc the month before and an increase of 8.6pc in February 2021. By comparison, it climbed by 0.1pc the month before and 2.3pc in February 2021 month-on-month, for a gain of 0.9pc in February 2022. Compared to the previous month’s increase of 12.9pc and the 8.8pc increase in February 2021, rural CPI inflation in February 2022 climbed by 13.3pc year-on-year. Since the previous month’s increase of 0.9pc and February’s increase of 1.1pc, it has increased by 1.5pc month-to-month as of February 2022. Staff Report