CHAPTER ONE
INTRODUCTION
1.1 Background of the study
According to Zou in 2011 inflation is an unpreventable attribute of every economy in the world. It has an impact on every nation, both developed and developing, in both good and harmful ways. Zou et al. (2011), said inflation is a significant contributor to social and economic instability and disorder. Both conceptually and experimentally, it is one of the most often observed and tested economic variables. Its sources, effects on other economic variables, and total economic cost are all well-known and recognized (Zou , 2011). Pakistan, as a developing nation, has been unable to avoid rising inflation, as well as its causes and repercussions, from year to year. In late 2003, Pakistan's inflation rate began to increase after maintaining relatively low for a long period (Mohsin and...