ISLAMABAD – Subway has launched a three-inch sandwich in inflation-battered Pakistan, the first time the fast-food chain has launched a mini version of its sandwich.

The bite-size sandwich, which appeared on Pakistani menus and social media posts with little fanfare in August, provides “value” to Pakistani customers, a spokesman for Subway told Bloomberg News on Wednesday.

The US-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 spiralling prices, many restaurants have increased prices or reduced quantities.

While Pakistan’s headline inflation rate cooled for the third straight month in August to 27.38 per cent on an annual basis, “it’s not likely to last”, Bloomberg Economics South Asia expert Ankur Shukla wrote on Wednesday.

Food inflation also continued to rise to 38.5 per cent 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 Mr Shukla, who expects inflation to average 30 per cent in the last four months of 2023.

Pakistan was saved from default earlier in 2023 after securing a further US$3 billion (S$4 billion) bailout disbursement from the International Monetary Fund.

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. BLOOMBERG