The latest data from the Pakistan Bureau of Statistics (PBS) shows that inflation, as measured by the Consumer Price Index (CPI), jumped by 28.3% year-on-year in January. This increase in inflation is higher than earlier expectations, largely due to energy prices and food inflation. The State Bank of Pakistan (SBP) has kept its key rate at 22% for the fifth consecutive policy meeting, citing the need to address the “elevated” inflation, which was at 29.7% in December. The SBP has also revised its full-year inflation projections to 23-25%, up from the previous projection of 20-22%, due to rising gas and electricity prices. In January, monthly inflation saw a 1.83% rise from the previous month. Urban and rural areas both experienced notable increases in the prices of food items such as chicken, tomatoes, onions, eggs, and fresh vegetables. This data comes ahead of the general elections and as Pakistan undertakes reforms linked to a $3 billion Standby Arrangement with the International Monetary Fund (IMF).