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Inflation is its peak all over the world and there are different reasons for it. In the case of Asian country, Pakistan Inflation is the result of monetary phenomenon. The reason is that excess money supply growth in Pakistan has basically enhanced inflation in Pakistan. According to monetary policy announced recently in Pakistan, the CPI of Pakistan has dropped to 19.1% in March 2009 as compared to 25% in August 2008. But still inflation is very high as compared to the desirable level. Inflation has also risen because of increasing costs like wages. Moreover, the international increase of commodity prices, external shocks, worsening exchange rate and exhaustion of natural resources have also contributed significantly in enhancing inflation.
Causes of inflation in Pakistan
Causes of inflation in Pakistan
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