Inflation bites consumers in the first month of financial year

The first month of the current financial year has seen a sharp rise in inflation, after CPI inflation, increased by 9.3 percent on year-on-year basis in July 2020 as compared to an increase of 8.6pc in the previous month and 8.4pc in July 2019.

According to the Pakistan Bureau of Statistics (PBS) latest data, on month-on-month basis, the inflation rate increased by 2.5pc in July 2020 as compared to an increase of 0.8pc in the previous month and an increase of 1.8pc in July 2019.

CPI inflation Urban, increased by 7.8pc on year-on-year basis in July 2020 as compared to an increase of 7.6pc in the previous month and 8.7pc in July 2019. On month-on-month basis, it increased by 2.2pc in July 2020 as compared to an increase of 0.7pc in the previous month and an increase of 2.0pc in July 2019.

Whereas, CPI inflation Rural, increased by 11.5pc on year-on-year basis in July 2020 as compared to an increase of 10.0pc in the previous month and 7.9pc in July 2019. On month-on-month basis, it increased by 2.9pc in July 2020 as compared to an increase of 1.0pc in the previous month and an increase of 1.6pc in July 2019.

On a monthly basis, vegetables became 23.8pc more expensive in July in urban Areas, while tomatoes rates skyrocketed as it became over 179pc more expensive and onions 16.6 per cent more expensive, the statistics office said.

In food items, the rates of Eggs (10.82pc), Spices(7.57pc), Wheat(7.42pc), Potatoes(4.58pc), Meat(3.97pc), Sugar(3.82pc), Beans(3.07pc), Cigarettes (2.88pc), Chicken (2.6pc), Milk products(1.74pc) and Milk (1.37pc) Decreased: Pulse moong (10.72pc), Pulse masoor(6.27pc), fruits(6.24pc), Pulse mash(2.71pc), Gram whohe (2.7pc), Pulse gram(2.39pc), Wheat flour (1.51pc) and Cooking oil(1.34pc) Non-food Items Increased: Motor fuel(27.01pc), Liquified Hydrocarbons(7.27pc), House rent(1.58pc) and medicines(1.04pc).

In non-food items, the rate of motor fuel rose over 27pc on monthly basis in urban areas, whereas, rate of Liquified Hydrocarbons increased 7.27pc and house rent also rose by 1.58pc.