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Karachi remains Pakistan's 'cheapest city to live in'
Publication Date : 15-01-2014
Inflation has affected all areas of life in Pakistan, but Karachi has managed to remain the cheapest city to live in, besides Vehari, a small town in Punjab province.
This was revealed by a report on the Inflation Monitor in December last year prepared by the state bank. However, it did not give reasons why Karachi is regarded as the cheapest city in Pakistan.
However, an analyst said that the low inflation in Karachi could be due to its large capacity for consumption, as well as it being the largest trading and production hub in Pakistan.
Nevertheless, Karachi is still not regarded as a tourist attraction, as its hotel occupancy rates remain low.
The report also showed that Islamabad was on top of the list of cities affected by the inflation, with the highest Consumer Price Index (CPI). At the end of December 2013, the overall inflation rate for Islamabad stood at 15.5 per cent, food in the city at 11.4 per cent, and other goods at 18.7 per cent. The overall inflation rate for Pakistan as per that month was 9.2 per cent.
Larkana, the country's strongest political centre after Islamabad, showed an inflation rate of 13.9 per cent, which mostly affected food prices in the city.
The city of Dera Murad Jamali in Balochistan province saw the highest inflation of food prices in the country, at 14.9 per cent.
Other provicial capitals like Peshawar and Quetta were also listed among the cities most affected by high inflation rates, while Lahore stood among the cities least affected by inflation with a CPI of eight percent.