current affairs MCQ #4903

Pakistan's inflation surged above 30% in 2023, which type of inflation was primarily responsible?

current affairs MCQ #4903

  1. Question 1

    Q1. Pakistan's inflation surged above 30% in 2023, which type of inflation was primarily responsible?

    • A) Demand-pull inflation only
    • B) Cost-push inflation driven by energy prices and currency depreciation
    • C) Wage-push inflation from labor unions
    • D) Asset price inflation from stock market boom

    Answer: Cost-push inflation driven by energy prices and currency depreciation

    Explanation: Pakistan's inflation surge above 30% in 2023 was primarily cost-push in nature, driven by massive increases in energy prices (electricity and gas tariff hikes under IMF conditions) and sharp rupee depreciation increasing import costs.