ANL 19.29 Decreased By ▼ -1.56 (-7.48%)
ASC 13.45 Decreased By ▼ -0.09 (-0.66%)
ASL 22.20 Decreased By ▼ -0.80 (-3.48%)
BOP 8.18 Decreased By ▼ -0.02 (-0.24%)
BYCO 7.55 Decreased By ▼ -0.26 (-3.33%)
FCCL 17.45 Decreased By ▼ -0.35 (-1.97%)
FFBL 22.10 Decreased By ▼ -0.65 (-2.86%)
FFL 15.20 Decreased By ▼ -0.30 (-1.94%)
FNEL 7.40 Increased By ▲ 0.05 (0.68%)
GGGL 17.00 Decreased By ▼ -0.83 (-4.66%)
GGL 39.30 Decreased By ▼ -0.71 (-1.77%)
HUMNL 5.76 Decreased By ▼ -0.26 (-4.32%)
JSCL 18.00 Decreased By ▼ -0.30 (-1.64%)
KAPCO 35.95 Decreased By ▼ -0.40 (-1.1%)
KEL 3.29 Decreased By ▼ -0.11 (-3.24%)
MDTL 2.50 Decreased By ▼ -0.15 (-5.66%)
MLCF 34.24 Decreased By ▼ -0.86 (-2.45%)
NETSOL 119.85 Decreased By ▼ -9.55 (-7.38%)
PACE 4.94 Increased By ▲ 0.19 (4%)
PAEL 26.53 Decreased By ▼ -0.47 (-1.74%)
PIBTL 8.71 Decreased By ▼ -0.14 (-1.58%)
POWER 7.25 Decreased By ▼ -0.20 (-2.68%)
PRL 16.97 Decreased By ▼ -0.18 (-1.05%)
PTC 9.65 Decreased By ▼ -0.36 (-3.6%)
SILK 1.50 No Change ▼ 0.00 (0%)
SNGP 45.10 Increased By ▲ 0.10 (0.22%)
TELE 17.48 Decreased By ▼ -1.41 (-7.46%)
TRG 161.00 Decreased By ▼ -1.70 (-1.04%)
UNITY 31.80 Decreased By ▼ -1.15 (-3.49%)
WTL 2.85 Decreased By ▼ -0.09 (-3.06%)
BR100 4,718 Decreased By ▼ -14.65 (-0.31%)
BR30 22,320 Decreased By ▼ -482.1 (-2.11%)
KSE100 45,074 Decreased By ▼ -223.36 (-0.49%)
KSE30 17,742 Decreased By ▼ -68.18 (-0.38%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,482
5024hr
Pakistan Cases
1,234,828
2,23324hr
4.23% positivity
Sindh
453,858
Punjab
426,639
Balochistan
32,828
Islamabad
104,764
KPK
172,498
Business & Finance

Inflation reading clocks in at 8.4% in July

  • SBP had earlier stated that it expects inflation to moderate to 7-9% this fiscal year
  • CPI inflation in rural areas recorded at 8% on a year-on-year basis in July 2021 compared to an increase of 9.7% in the previous month and 11.6% in July 2020
02 Aug 2021

Consumer Price Index (CPI)-based inflation was recorded at 8.4% on a year-on-year basis in July 2021, compared to 9.7% in June 2021 and 9.3% in July 2020, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday.

According to the monthly review of price indices, on a month-on-month basis, CPI increased by 1.3% in July 2021 compared to a decrease of 0.4% in the previous month and an increase of 2.5% in July 2020.

The slowdown in CPI inflation comes as a sigh of relief for many as it has remained a thorny issue for the Pakistan Tehreek-e-Insaf (PTI) government, which is facing a number of issues at the economic front including rising commodity prices in international markets, and a widening current account deficit amid rise in import bill.

The inflation reading comes days after the central bank announced to maintain the discount rate at 7%.

Encouraged by 'positive developments', SBP keeps interest rate unchanged at 7%

In its statement last week, the SBP said that it expected inflation to moderate to 7-9% this fiscal year.

"In addition, consumer and business confidence have risen to multi-year highs and inflation expectations have fallen," the SBP said in its monetary policy statement last month. "As a result of these positive developments, growth is projected to rise from 3.9% in FY21 to 4-5% this year, and average inflation to moderate to 7-9% this year from its recent higher out-turns."

Meanwhile, CPI inflation in rural areas was recorded at 8.0% on a year-on-year basis in July 2021 as compared to an increase of 9.7% in the previous month and 11.6% in July 2020. On a month-on-month basis, it stood at 1.4% in July 2021 as compared to a decrease of 0.06% in the previous month and an increase of 3% in July 2020.

Inflation: a ticking time bomb

The Sensitive Price Index (SPI) increased by 16.2% year-on-year in July 2021 as compared to an increase of 17.6% a month earlier and an increase of 13.7% in July 2020. The Wholesale Price Index (WPI) increased by 17.3% year-on-year in July 2021 compared to an increase of 20.9% a month earlier and an increase of 3.2% in July 2020.

Comments

Comments are closed.