Pakistani stocks close at four-year high as inflation hits 33-month low

[Sachaydino]

Re: Pakistani stocks close at four-year high as inflation hits 33-month low

@kakaballi

4 years high mean that we have only recovered to post 2008-crash state, which is not a great achievement given the massive inflation in last 4 years. It is only natural in any country to investors to move to stocks when they expect the interest rates to fall and they don’t get substantial return on fixed income securities.

Also, inflation is ‘easing’ only, primarily triggered by easing inflation in China which in July also hit a 30 month low. The key indicators for success of any economic policy are real per capita GDP growth, foreign direct investment and employment rates. Inflation and stock indices on their own do not tell much. Reduction in growth actually has a direct impact of reducing inflation.

The question is, did income of middle class workers grow in line with inflation?

I know this news for you is like swallowing load of stones and bricks.