August inflation reading comes in at 8.4%

The Consumer Price Index (CPI) inflation clocked in at 8.4% on a year-on-year (YoY) basis in August 2021, a similar reading to the previous month when it came in at 8.4%, but slightly higher than 8.2% in August 2020, showed data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.

According to the monthly review of price indices by the PBS, on a month-on-month (MoM) basis, it increased by 0.6% in August 2021 compared to an increase of 1.3% in the previous month and an increase of 0.6% in August 2020.

CPI inflation urban increased by 8.3% on a YoY basis in August 2021, as compared to an increase of 8.7% in recorded the previous month and 7.1% in August 2020. On a MoM basis, it increased by 0.5% in August 2021 as compared to an increase of 1.29% in the previous month and an increase of 0.8% in August 2020.

July CPI inflation jumps 8.4pc YoY

CPI inflation rural increased by 8.4% on yearly basis in August 2021 as compared to an increase of 8.0% in the previous month and 9.9% in August 2020. On a monthly basis, rural inflation increased by 0.7% in August 2021 as compared to an increase of 1.4% in the previous month and an increase of 0.4% in August 2020.

Global ratings agency S&P Global in its latest report on Pakistan has said that after hitting 11.1% year on year in April, the CPI inflation has receded somewhat since then on a rapid decline in food price inflation. Price levels have largely adjusted to the weaker rupee from the period prior to the pandemic.

"We expect inflation to gradually decline from 2020 toward its long-term trend of about 6%. The government's commitment to end budget financing by the SBP starting July 2019 is assisting in cutting inflationary pressure over the long term," it said.

We expect inflation to gradually decline from 2020 toward its long-term trend of about 6%. The government's commitment to end budget financing by the SBP starting July 2019 is assisting in cutting inflationary pressure over the long term: S&P Global

June CPI inflation increases 9.70pc YoY

Meanwhile, Sensitive Price Index (SPI) inflation on YoY increased by 15.9% in August 2021 as compared to an increase of 16.2% a month earlier and an increase of 11.7% in August 2020. On an MoM basis, it increased by 0.7% in August 2021 as compared to an increase of 1.8% a month earlier and an increase of 0.9% in August 2020.

Meanwhile, the Wholesale Price Index (WPI) inflation on a YoY basis increased by 17.1% in August 2021 as compared to an increase of 17.3% a month earlier and an increase of 3.3% in August 2020. WPI inflation on an MoM basis increased by 1.2% in August 2021 as compared to an increase of 2.3% a month earlier and an increase of 1.3% in a corresponding month i.e. August 2020.