What is the main cause of inflation in Pakistan right now?

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pohnpei397 eNotes educator| Certified Educator

In general, inflation occurs when there is too much demand relative to the supply in a country.  This can occur because demand increases excessively or because supply decreases.  In the case of Pakistan today, one of the major causes of inflation is a decrease in aggregate supply.  This is especially true in the case of food.  The price of food and beverages in Pakistan is up over 20% from a year ago, according to the foxbusiness.com link below.

The major cause of the increase in food prices is the terrible flooding that has occured in Pakistan this year.  The flooding has destroyed enough of the food supply to affect the prices of food and drink in the country.

So the cause of Pakistan's inflation this year is mainly the flooding which decreased the supply of food, thus leading to increases in food prices which is driving overall inflation.