Islamabad, Aug. 2 -- Pakistan's inflation surged to 4.1 per cent in July, driven primarily by rising costs of non-perishable food items and the Pakistani government-administered increases in energy tariffs, The Express Tribune reported.

Data released by the Pakistan Bureau of Statistics (PBS) on Friday shows this is the highest inflation rate since December last year. More concerning is the sharp 2.9 per cent month-on-month increase, the steepest in over two years, signalling renewed inflationary stress at the very start of the new fiscal year 2025-26, The Express Tribune reported.

The situation has been worsened by Islamabad's rigid monetary stance. Despite inflation dropping below the policy interest rate--currently held at a steep 11...