According to the latest report by the Federal Bureau of Statistics (PBS), Pakistan’s inflation rate has surged to a staggering 32.73 per cent, marking a significant jump of 1.27 per cent in just one week. PBS records a concerning situation where prices of essential goods like eggs, onions, tea, potatoes, and garlic have recorded a rise. Even basic necessities such as gas have become more expensive, adding to the financial burden on households in Pakistan.
| Inflation in Pakistan | |||
|---|---|---|---|
| Index | February over February % Changes | ||
| 2023-2024 | 2022-2023 | 2021-2022 | |
| CPI (National) | 23.06 | 31.55 | 12.24 |
| CPI (Urban) | 24.87 | 28.82 | 11.51 |
| CPI (Rural) | 20.54 | 35.56 | 13.33 |
| SPI | 30.37 | 33.63 | 18.70 |
| WPI | 18.66 | 36.45 | 23.61 |
PBS also registered that the prices of 14 essential items witnessed an upward trend, including eggs, onion, tea, potato, garlic, beef, dal mung, banana, and gas. Conversely, prices of 12 items experienced a fall, with tomatoes, ghee, dal mash, lentils, cooking oil, bread and jaggery while LPG becoming more affordable.
The raw material prices surged by 167 per cent on an annual basis, while red chili, sugar, flour, jaggery and garlic also recorded substantial increases. However, ghee and cooking oil saw a decline in prices compared to the last year.
PBS further registers by statistics that a persistent rise in inflation rates over the years, with February 2024 registering a 23 per cent inflation rate compared to 26 per cent in February 2023. The average inflation rate for the current financial year surpassed 28 per cent, with urban areas experiencing a rate of 24.9 per cent and rural areas at 20.5 per cent.
Various sectors recorded significant price hikes, with gas bills soaring by 319 per cent, electricity by 75 per cent, and transport services by 35 per cent within a year. Additionally, educational materials, house rent, newspapers and stationery also saw notable raises in prices. On the other hand, the State Bank of Pakistan (SBP) held its key rate at 22 per cent for the fifth policy meeting in a row and grew its full-year inflation projections. It is said that the decision was warranted because of elevated inflation, which was 29.7 per cent in December. A rise in the bank’s average inflation forecast for the fiscal year closing in June to 23-25 per cent, from a previous projection of 20-22 per cent, was because of rising gas and electricity prices.
CPI inflation general
CPI inflation general, grew to 23.1 per cent on year-on-year basis in February 2024 as against to a rise of 28.3 per cent in the previous month and 31.5 per cent in February 2023. On a month-on-month basis, no change was observed in February 2024 as against to a rise of 1.8 per cent in the previous month and a rise of 4.3 per cent in February 2023.
CPI inflation urban
CPI inflation urban, grew to 24.9 per cent on year-on-year basis in February 2024 as against to an increase of 30.2 per cent in the last month and 28.8 per cent in February 2023. On a month-on-month basis, it grew to 0.2 per cent in February 2024 as against to an increase of 1.8 per cent in the last month and an increase of 4.5 per cent in February 2023.
CPI inflation rural
CPI inflation rural, grew to 20.5 per cent on year-on-year basis in February 2024 as compared to an increase of 25.7 per cent in the last month and 35.6 per cent in February 2023. On a month-on-month basis, it fell to 0.3 per cent in February 2024 as against to an increase of 1.9 per cent in the last month and an increase of 4.0 per cent in February 2023.
SPI inflation
SPI inflation on YoY grew to 30.4 per cent in February 2024 as against to an increase of 36.2 per cent a month earlier and 33.6 per cent in February 2023. On MoM basis, it declined by 0.8 per cent in February 2024 as against to an increase of 2.0 per cent a month earlier and an increase of 3.7 per cent in February 2023.
WPI inflation
WPI inflation on YoY basis grew to 18.7 per cent in February 2024 as against to an increase of 27.0 per cent a month earlier and an increase of 36.4 per cent in February 2023. On MoM basis, it grew by 1.1 per cent in February 2024 as compare to an increase of 1.5 per cent in the last month and an increase of 8.2 per cent in same month of last year i.e. February 2023.
Core inflation (NFNE)
Measured by non-food non-energy urban inflation grew to 15.5 per cent on (YoY) basis in February 2024 as compared to an increase of 17.8 per cent in the previous month and 17.1 per cent in February 2023. On (MoM) basis, it increased by 0.3 per cent in February 2024 as compared to an increase of 1.1 per cent in previous month, and an increase of 2.2 per cent in corresponding month of last year i.e. February, 2023.
Measured by non-food non-energy rural inflation increased to 21.9 per cent on (YoY) basis in February 2024 as compared to an increase of 24.6 per cent in the previous month and 21.5 per cent in February 2023. On (MoM) basis, it increased by 0.4 per cent in February 2024 as compared to an increase of 1.2 per cent in previous month, and an increase of 2.6 per cent in corresponding month of last year i.e. February 2023.
Core inflation (trimmed)
Measured by 20 per cent weighted trimmed mean urban inflation grew to 16.0 per cent on (YoY) basis in February 2024 as against to 22.1 per cent in the previous month and 25.1 per cent in February 2023. On (MoM) basis, it grew by 0.3 per cent in February 2024 as against to an increase of 1.0 per cent in the last month and an increase of 2.9 per cent in same month of last year i.e. February 2023. Furthermore, measured by 20 per cent weighted trimmed mean rural inflation grew to 21.3 perc ent on (YoY) basis in February 2024 as against to 25.8 per cent in the previous month and 31.6 per cent in February 2023. On (MoM) basis, it also grew to 0.4 per cent in February 2024 as compared to an increase of 1.2 per cent in the previous month and a rise of 3.9 per cent in corresponding month of last year i.e. February 2023.