Pakistan, Aug. 2 -- Headline inflation rose to 4.1 per cent year-on-year in July, up from 3.2 per cent in June. On a monthly basis, consumer prices increased by 2.9 per cent.

The increase was led by food, fuel, and medicines, which together make up a large share of the consumption basket for lower- and middle-income households.

This development comes despite the finance ministry's projection that inflation would remain within a 3.5-4.5 per cent range, based on expectations of improved supply conditions and the easing of earlier price pressures. In practice, retail prices of perishables increased substantially during the month, following fuel price adjustments and continued electricity tariff rationalisation. Upward pressure on key essen...