ISLAMABAD: With rising energy prices, the inflation in Pakistan crossed 26% in October on a year-on-year basis after recording a marginal drop in the previous month, the fresh data released by Pakistan Bureau of Statistics (PBS) revealed on Tuesday.
The 26.66 percent inflation recorded in October, according to sources, the second highest one in the past 47 years as the same number was recorded in 1974. In June 2022, the inflation reading had crossed the 20% mark, surging to an over 47-year high level of 27.3% in August 2022 on a year-on-year (YoY) basis.
Compared to October last year, when the index was recorded at 9.2%, this year, inflation made a significant jump in October to reach 26.6%. As per the data on a month-on-month (MoM) basis, the Consumer Price Index (CPI)-based inflation in October 2022 jumped by 4.7% as compared to a decrease of 1.2% in the previous month.
“CPI inflation General, increased to 26.6% on a year-on-year basis in Oct 2022 as compared to an increase of 23.2% in the previous month and 9.2% in Oct 2021,” said the PBS.
In June 2022, the inflation reading had crossed the 20% mark, surging to an over 47-year high level of 27.3% in August 2022 on a year-on-year (YoY) basis. The inflation reading comes as per market expectations.
As per the PBS, CPI inflation in urban areas clocked in at 24.6% on a year-on-year basis in Oct 2022 as compared to an increase of 21.2% in the previous month and 9.6% in Oct 2021.
On a month-on-month basis, it increased to 4.5% in Oct 2022 as compared to a decrease of 2.1% in the previous month and an increase of 1.7% in Oct 2021.
Moreover, CPI inflation in rural areas hit 29.5% on a year-on-year basis in Oct 2022 as compared to an increase of 26.1% in the previous month and 8.7% in Oct 2021.
On a month-on-month basis, it increased to 5.0% in Oct 2022 as compared to an increase of 0.2% in the previous month and an increase of 2.2% in Oct 2021.
The food commodities that witnessed an increase in prices on YoY basis included tomatoes (219.34%), onions (165.66%), gram whole (69.80%), pulse gram (65.08%), besan (62.25%), mustard oil (61.14%), pulse masoor (61.07%), fresh vegetables (58.87%), cooking oil (58.06%), pulse mash (55.33%), vegetable ghee (52.5%), pulse moong (49.84%), wheat (45.77%), tea (41.89%), rice (40.76%), wheat flour (37.38%), milk fresh (29.61%), meat (25.34%), potatoes (20.65%), fish (15.4%), chicken (12.22%) and gur (0.39%).
The food commodities that witnessed decrease in prices included sugar (11.84%) and condiments & spices (10.97%).
The non-food commodities that witnessed increase on YoY basis included motor fuel (64.81%), stationery (44.5%), washing soap/detergents/match box (41.49%), transport services (41.27%), motor vehicles (34.29%), construction input items (32.03%), motor vehicle accessories (31.31%), electricity charges (24.95%), cotton cloth (24.16%), household equipment (21.4%), solid fuel (20.88%) and construction wage rates (12.72%).
The Sensitive Price Index (SPI) inflation on YoY increased to 24.0% in Oct 2022 as compared to an increase of 28.6% a month earlier and an increase of 15.3% in Oct 2021. On a MoM basis, it decreased by 1.5% in Oct 2022 as compared to a decrease of 1.4% a month earlier and an increase of 2.1% in Oct 2021.
Wholesale Price Index (WPI) inflation on YoY basis increased to 32.6% in Oct 2022 as compared to an increase of 38.9% a month earlier and an increase of 21.2% in Oct 2021. On a MoM basis, it decreased by 0.5% in Oct 2022 as compared to an increase of 1.4% a month earlier and an increase of 4.2% in corresponding month i.e. Oct 2021.
Rising inflation has emerged as a key concern for Pakistan’s economy, already in the midst of depleting foreign exchange reserves.
In October, the State Bank of Pakistan (SBP) in its Monetary Policy Committee (MPC) kept the policy rate unchanged at 15% as it felt that the existing monetary policy stance strikes an appropriate balance between managing inflation and maintaining growth in the wake of the floods.
The government, in a late-night development on Monday, announced to keep the price of petroleum products unchanged for the next 15 days.
PBS data suggested that transport, food, housing, and restaurant & hotel groups witnessed the highest pace of inflation in October.
