Tag: Inflation rate

  • Pakistan’s inflation rate drops to 29.40% in June: Citizens’ purchasing power remains under pressure

    Pakistan’s inflation rate drops to 29.40% in June: Citizens’ purchasing power remains under pressure

    The Pakistan Bureau of Statistics (PBS) has released the latest data on the country’s inflation rate for June, indicating a slight decline compared to May. According to the report, the inflation rate for June stood at 29.40 per cent, showing an increase of 8.1 per cent compared to the same period last year.

    Although there was a marginal improvement from the inflation rate of 38 per cent reported in May, the country still faces significant challenges due to high inflation. This persistent inflationary environment continues to erode the purchasing power of citizens, affecting their ability to afford basic necessities.

    Analysing the data further, the report highlights that inflation in urban areas was recorded at 27.3 per cent, while agricultural communities experienced an even higher inflation rate of 32.4 per cent. These figures emphasise the vulnerability of rural areas and the agricultural sector to the rising cost of living.

    Comparing the current situation with that of the previous year, the Bureau of Statistics reveals a substantial year-on-year increase. In June of the previous year, the inflation rate was 21.3 per cent, further underscoring the severity of the current inflationary crisis.

  • Pakistan’s inflation hits 21.32 per cent in June 2022

    Pakistan’s inflation hits 21.32 per cent in June 2022

    In June 2022, Pakistan’s yearly inflation rate reached a 13-year high of 21.3 per cent, up from 9.7 per cent in June 2021 and 13.8 per cent in May 2022, according to the most recent data made public recently by the Pakistan Bureau of Statistics (PBS).

    According to PBS, monthly CPI-based inflation rose by 6.3 per cent in June 2022 as opposed to a 0.4 per cent increase the month before and a 0.3 per cent decrease in June 2021.

    Compared to increases of 14.1 per cent a month prior and 17.6 per cent a year prior, the Sensitive Price Index (SPI) inflation on a YoY basis increased by 21.7 per cent in June 2022. On a month-over-month basis, it increased by 6.2 per cent in June 2022 compared to a 0.6 per cent increase the previous month and a (-)0.4 per cent decrease in June 2021.

    The Consumer Price Index (CPI) reached 21.3 per cent on a year-over-year (YoY) basis as Pakistan’s economy battles a widening current account deficit brought on by a high import bill, rising inflation has become a major concern.

    In an effort to combat economic headwinds, the State Bank of Pakistan (SBP) increased the key interest rate by 150 basis points to 13.75 per cent earlier in May. At the time, the central bank predicted that as electricity and fuel subsidies are eliminated, inflation is likely to spike briefly, remain high through FY23, and then drop precipitously in FY24, according to Brecorder.

    The SBP is currently scheduled to decide the key interest rate at its upcoming Monetary Policy Committee meeting on July 7.

    On the other hand, the current administration increased the price of petroleum products in an effort to resurrect the International Monetary Fund (IMF) programme, which is anticipated to drive up inflation even further.

    The government announced a late-night price increase for petroleum products on Thursday, raising the ex-depot price of gasoline to Rs248.74 per liter (after an increase of Rs14.85) and diesel to Rs276.54 (after a hike of Rs13.23).

    CPI inflation in urban areas

    In contrast, year-over-year CPI inflation in urban areas increased by 19.8 per cent in June 2022 as opposed to increases of 12.4 per cent in May 2022 and 9.6 per cent in June 2021.

    In June 2022, it increased by 6.2 per cent month over month, compared to a 0.3 per cent increase the month before and a 0.4 per cent decline in June 2021.

    CPI inflation in rural areas

    In contrast to the previous month’s increase of 15.9 per cent and the increase of 9.7 per cent in June 2021, the CPI inflation rate in rural areas increased by 23.6 per cent on an annual basis in June 2022.

    Comparing June 2022 to June 2021, it increased by 6.6 per cent month over month, compared to increases of 0.6 per cent and 0.1 per cent, respectively.