AVN 66.05 Increased By ▲ 0.85 (1.3%)
BAFL 30.80 Increased By ▲ 0.06 (0.2%)
BOP 4.86 Increased By ▲ 0.06 (1.25%)
CNERGY 3.74 Increased By ▲ 0.03 (0.81%)
DFML 14.30 Increased By ▲ 0.09 (0.63%)
DGKC 40.95 Decreased By ▼ -0.10 (-0.24%)
EPCL 46.68 Increased By ▲ 0.23 (0.5%)
FCCL 11.32 Decreased By ▼ -0.08 (-0.7%)
FFL 5.04 Decreased By ▼ -0.01 (-0.2%)
FLYNG 5.88 Increased By ▲ 0.08 (1.38%)
GGL 10.48 Increased By ▲ 0.15 (1.45%)
HUBC 66.86 Decreased By ▼ -0.01 (-0.01%)
HUMNL 5.70 Decreased By ▼ -0.01 (-0.18%)
KAPCO 27.95 Increased By ▲ 0.19 (0.68%)
KEL 2.19 Decreased By ▼ -0.01 (-0.45%)
LOTCHEM 25.10 Increased By ▲ 0.20 (0.8%)
MLCF 21.28 Decreased By ▼ -0.16 (-0.75%)
NETSOL 84.72 Increased By ▲ 1.12 (1.34%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.08 Increased By ▲ 0.07 (0.64%)
PIBTL 4.20 Decreased By ▼ -0.02 (-0.47%)
PPL 78.90 Increased By ▲ 4.42 (5.93%)
PRL 13.51 Increased By ▲ 0.08 (0.6%)
SILK 0.92 No Change ▼ 0.00 (0%)
SNGP 41.91 Increased By ▲ 1.51 (3.74%)
TELE 5.86 No Change ▼ 0.00 (0%)
TPLP 15.77 Increased By ▲ 0.37 (2.4%)
TRG 112.83 Increased By ▲ 1.42 (1.27%)
UNITY 13.71 Decreased By ▼ -0.04 (-0.29%)
WTL 1.14 No Change ▼ 0.00 (0%)
BR100 4,073 Increased By 35.6 (0.88%)
BR30 14,743 Increased By 331.6 (2.3%)
KSE100 40,717 Increased By 245.7 (0.61%)
KSE30 15,286 Increased By 123.1 (0.81%)
Pakistan

August's inflation reading in Pakistan hits 27.3%, highest in over 47 years

  • CPI inflation in rural areas clocked in at 28.8% on a year-on-year basis
Published September 1, 2022 Updated October 1, 2022
Follow us

Consumer Price Index (CPI)-based inflation hit 27.3% on a year-on-year (YoY) basis in August 2022, compared to 24.9% in the previous month and 8.4% in August 2021, revealed data released on Thursday.

On a month-on-month basis, CPI-based inflation increased by 2.4% in August 2022 as compared to 4.3% in the previous month, and 0.6% in August 2021, stated the Pakistan Bureau of Statistics (PBS).

"This is the highest inflation since the first half of 1975, and takes 2MFY23 average inflation to 26.1% compared to 8.36% in 2MFY22. " brokerage house Arif Habib Limited (AHL) said after inflation figures were released.

Source: PBS
Source: PBS

Inflation in Pakistan hits 24.9% in July, a 14-year high

Tahir Abbas, Head of Research at AHL, said high inflation readings are here to stay.

"Prices of food items are expected to stay high after the ongoing flood situation. However, the government's decision to import these items could help the situation," Abbas told Business Recorder.

CPI inflation

CPI inflation in urban areas clocked in at 26.2% on year-on-year basis in August 2022 as compared to 23.6% in the previous month and 8.3% in Aug 2021.

On a month-on-month basis, it increased by 2.6% in Aug 2022 as compared to 4.5% in the previous month and 0.5% in Aug 2021.

Moreover, CPI inflation in rural areas hit 28.8% on year-on-year basis in August 2022 as compared to 26.9% in the previous month and 8.4% in Aug 2021.

On month-on-month basis, it increased by 2.2% in Aug 2022 as compared to 4.2% in the previous month and 0.7% in Aug 2021.

Rising inflation has emerged as a key concern for Pakistan's economy, already in the midst of depleting foreign exchange reserves. Experts have warned that the country will see prices of food items rise further in the wake of ongoing flash floods that have caused at least 1,100 casualties, widespread destruction, and displaced millions of people.

In August, the State Bank of Pakistan (SBP) in its Monetary Policy Committee (MPC) kept the policy rate unchanged at 15% as it felt it was prudent to take a pause at this stage.

The central bank has already projected inflation to remain elevated during the current fiscal year due to the significant supply shock.

“Looking ahead, headline inflation is projected to peak in the first quarter before declining gradually through the rest of the fiscal year. Thereafter, it is expected to decline sharply and fall to the 5-7 percent target range by the end of FY24, supported by the lagged effects of tight monetary and fiscal policies, the normalisation of global commodity prices, and beneficial base effects,” said the central bank after its last MPC meeting.

On the other hand, the government, in a late-night development on Wednesday, announced up to Rs10.92 per litre increase in the prices of petroleum products for the first half of September 2022.

PBS data suggested the transport, food, housing, and energy groups witnessed the highest pace of inflation in August.

An earlier version of the story stated inflation figure for August 2022 is the highest since November 1973. The error is regretted, and has been rectified.

Comments

Comments are closed.

August's inflation reading in Pakistan hits 27.3%, highest in over 47 years

Intra-day update: rupee sees improvement against US dollar

Talks extended for two days: IMF demands govt withdraw power subsidy

All set for inking pact with Denmark under DETI

Major quake kills more than 100 across Turkey, Syria

FBR to check benami transactions of civil servants

Musharraf, the ‘architect’ of Kargil war, dies

TTP celebrates death

COAS reaches UK on five-day visit

China delivers two Hualong-1 nuclear power units

KSA warns sanctions, underinvestment may cause energy shortages