Subway Offers 3-Inch Sandwich in Inflation-Battered Pakistan – TIME

Subway launched a three-inch sandwich in inflation-battered Pakistan, the first time the fast-food chain has launched a mini version globally.
The bite-size sandwich, which appeared on Pakistani menus and social media posts with little fanfare last month, provides “value” to Pakistani customers, a spokesperson for Subway told Bloomberg News on Wednesday. The U.S.-based chain’s main offerings are six-inch and 12-inch sandwiches.
Pakistan is struggling with Asia’s fastest inflation, which has seen double-digit percentage increases fuel a cost-of-living crisis in the country of almost 250 million people. To deal with spiraling prices, many restaurants have increased prices or reduced quantities.
Read More: The Contrarian Case for Pakistan’s Upside
While Pakistan’s headline inflation rate cooled for the third straight month in August to 27.38% on an annual basis, “it’s not likely to last,” Ankur Shukla, a South Asia expert at Bloomberg Economics, wrote on Wednesday. Food inflation also continued to rise by 38.5% from a year earlier. 
“Price gains are set to pick up again as a weaker rupee drives up import costs and the government increases prices for fuel and utilities to meet the International Monetary Fund’s aid terms,” said Shukla, who expects inflation to average 30% in the last four months of this year.
Pakistan was saved from default earlier this year after securing a further $3 billion bailout disbursement from the IMF. However, the deal has come with stringent measures attached such as an increase in fuel and energy prices, which has sparked mass protests as people demand relief from rising electricity costs.
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