AVN 64.96 Decreased By ▼ -1.21 (-1.83%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.64 Decreased By ▼ -0.09 (-1.9%)
CNERGY 3.88 Decreased By ▼ -0.13 (-3.24%)
DFML 13.55 Decreased By ▼ -0.55 (-3.9%)
DGKC 42.20 Decreased By ▼ -1.49 (-3.41%)
EPCL 45.81 Increased By ▲ 1.16 (2.6%)
FCCL 11.41 Decreased By ▼ -0.42 (-3.55%)
FFL 5.17 Increased By ▲ 0.20 (4.02%)
FLYNG 5.80 Decreased By ▼ -0.30 (-4.92%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.30 Increased By ▲ 1.00 (1.61%)
HUMNL 5.75 Decreased By ▼ -0.10 (-1.71%)
KAPCO 27.83 Increased By ▲ 0.28 (1.02%)
KEL 2.13 Decreased By ▼ -0.08 (-3.62%)
LOTCHEM 25.33 Decreased By ▼ -1.27 (-4.77%)
MLCF 21.57 Decreased By ▼ -0.95 (-4.22%)
NETSOL 84.99 Decreased By ▼ -1.21 (-1.4%)
OGDC 86.23 Decreased By ▼ -0.04 (-0.05%)
PAEL 10.92 Decreased By ▼ -0.35 (-3.11%)
PIBTL 4.23 Decreased By ▼ -0.05 (-1.17%)
PPL 78.52 Decreased By ▼ -1.56 (-1.95%)
PRL 13.62 Decreased By ▼ -0.04 (-0.29%)
SILK 0.89 Decreased By ▼ -0.01 (-1.11%)
SNGP 40.86 Decreased By ▼ -0.89 (-2.13%)
TELE 6.00 Decreased By ▼ -0.21 (-3.38%)
TPLP 16.00 Decreased By ▼ -0.27 (-1.66%)
TRG 111.70 Decreased By ▼ -0.85 (-0.76%)
UNITY 13.99 Decreased By ▼ -0.36 (-2.51%)
WTL 1.13 Decreased By ▼ -0.07 (-5.83%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
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

PM Shehbaz hopeful of IMF programme revival ‘this month’

Islamabad court sends Fawad Chaudhry to Adiala jail on 14-day judicial remand

By-elections: ECP announces schedule for 33 NA seats vacated by PTI MNAs

PTI challenges Punjab caretaker CM appointment in Supreme Court

Analysts weigh in: rupee’s latest depreciation has wider implications, outcomes

India’s Adani slammed by $48bn stock rout, clouding record share sale

PBC urges authorities to augment IMF programme

Canada names journalist Amira Elghawaby as first anti-Islamophobia advisor

Premature termination of PPA of Hubco power plant recommended

Govt may exempt solar equipment from all taxes