Pakistan’s Inflation Hits 34-Month Low at 9.6% in August: PBS Report
Pakistan’s Consumer Price Index (CPI) saw a year-on-year (YoY) increase of 9.6% in August 2024, marking the lowest inflation rate in 34 months, according to the Pakistan Bureau of Statistics (PBS). The CPI tracks household inflation by measuring price changes across various household expenditure categories.
In a recent report, PBS highlighted that “CPI general inflation increased to 9.6% on a YoY basis in August 2024, compared to 11.1% in July 2024 and 27.4% in August 2023.” The monthly inflation rate was reported at 0.39%.
Topline Securities, a Karachi-based brokerage firm, noted that the August inflation figure is a 34-month low. The firm added, “This brings the average inflation for the first two months of FY25 to 10.36%, compared to 27.84% in the same period last year.”
The data also revealed a contrast between urban and rural areas. Urban inflation rose by 11.7% in August, while rural inflation increased by 6.7%.
July saw inflation rise to 11.1% YoY, down from 12.6% in June and 28.3% in July 2023. In May, inflation was 11.8%, marking a 30-month low.
Prime Minister Shehbaz Sharif expressed satisfaction with the declining inflation rate and other positive economic indicators. The Ministry of Finance had earlier predicted that inflation would remain between 9.5-10.5% in August and might further decline to 9-10% in September, attributing this to stable economic indicators.
Adding to the positive outlook, global rating agency Moody’s recently upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings from Caa3 to Caa2. This decision was based on “Pakistan’s improving macroeconomic conditions and moderately better government liquidity and external positions.”
Year-on-Year Price Changes:
- Urban Areas:
- Food Items: Onions (+136.32%), Fresh Vegetables (+76.35%), Pulse Gram (+42.35%), Besan (+31.15%), Fish (+28.98%), Fresh Fruits (+27.32%), Pulse Moong (+25.05%), Milk Powder (+24.17%)
- Non-Food Items: Gas Charges (+318.74%), Motor Vehicle Tax (+168.79%), Dental Services (+28.84%), Cotton Cloth (+24.17%)
- Rural Areas:
- Food Items: Onions (+144.27%), Fresh Vegetables (+57.31%), Pulse Gram (+39.19%), Beans (+30.52%), Pulse Moong (+29.46%), Milk Powder (+28.42%), Butter (+26.14%), Fresh Fruits (+25.11%), Fish (+24.13%)
- Non-Food Items: Motor Vehicle Tax (+126.61%), Woolen Readymade Garments (+38.42%), Education (+22.95%), Cotton Cloth (+22.13%), Marriage Hall Charges (+21.77%)
Month-on-Month Price Changes:
- Urban Areas:
- Food Items: Onions (+22.84%), Chicken (+13.62%), Eggs (+12.39%), Fresh Vegetables (+12.25%), Besan (+4.88%), Pulse Gram (+4.55%), Gram Whole (+3.82%)
- Non-Food Items: Motor Vehicle Tax (+168.79%), Stationery (+5.08%), Hosiery (+3.41%), Personal Effects (+2.47%)
- Rural Areas:
- Food Items: Chicken (+19.69%), Fresh Vegetables (+18.67%), Onions (+17.72%), Eggs (+14.28%), Pulse Gram (+5.32%), Besan (+4.44%)
- Non-Food Items: Motor Vehicle Tax (+126.61%), Dental Services (+3.24%), Stationery (+2.55%)
This detailed look at Pakistan’s inflation provides a clearer understanding of how prices have evolved, helping consumers and businesses alike stay informed about the economic landscape.
