November 2, 2023
ISLAMABAD – Inflation, measured by the Consumer Price Index (CPI), surged by 26.89 per cent year-on-year in October, according to data released by the Pakistan Bureau of Statistics on Wednesday.
On a month-on-month basis, the CPI inflation increased by 1.08pc in October.
According to the PBS data, urban and rural inflation increased 1.07pc and 1.01pc MoM, respectively.
The figures contradict the finance ministry’s claim in the Monthly Economic Update and Outlook for October that inflation was likely to reduce.
However, some respite came in the form of fuel price cuts and a price-control mechanism announced in October, that caretaker Prime Minister Anwaarul Haq Kakar said would limit inflation.
“On a month on month basis, inflation has slowed down to 1.08pc versus the last three months averaging 2.4pc,” said Mohammad Sohail, chief executive of Topline Securities.
This was reaffirmed by the Monetary Policy Committee(MPC) “that inflation will decline substantially from the second half of the year, barring any major adverse developments.”
The October inflation was mainly fueled by increase in food prices.
An increase was noted on a month-on-month basis in:
Food: Onions (38.71pc), Fresh Vegetables (17.74pc), Fresh Fruits (6.49pc), Eggs (6.05pc), Potatoes (3.72pc) and Fish (3.00pc)
Non-food: Electricity Charges (8.29pc), Marriage Hall Charges (5.43pc), Accommodation Services (4.50pc), Liquefied Hydrocarbons (3.87pc) and Drugs and Medicines (3.72pc).
Food: Onions (33.96pc), Fresh Vegetables (21.76pc), Beans (5.14pc), Potatoes (4.23pc), Condiments and Spices (3.65pc), Fish (3.63pc), Fresh Fruits (3.40pc) and Sweetmeat (3.37pc).
Non-food: Electricity Charges (8.29pc), Doctor Clinic Fee (4.37pc), Footwear (3.69pc), Medical Tests (3.39pc), Drugs and Medicines (3.00pc) and Furniture and Furnishing (3.00pc)
Index-wise increase in inflation YoY:
Non-perishable food items: 33.02pc
Alcoholic beverages and tobacco: 84.62pc
Restaurants and hotels: 33.06pc
Furnishing and household equipment maintenance: 37.14pc
Recreation and culture: 56.34pc
Miscellaneous goods and services: 35.23pc
Clothing and footwear: 20.64pc
Housing and utilities: 20.50pc