CPI inflation clocks in at 11.1pc for July – Business

Pakistan’s consumer price index (CPI) in July rose 11.1 per cent Year-on-Year (YoY), data from the Pakistan Bureau of Statistics (PBS) showed on Thursday.

The CPI measures household inflation and includes statistics about price change for categories of household expenditure.

“General CPI inflation increased to 11.1pc on year-on-year basis in July 2024 as compared to an increase of 12.6pc in the previous month and 28.3pc in July 2023,” the PBS report said.

The inflation rate was 2.1pc on a month-on-month (MoM) basis, PBS noted, while, rural inflation was noted at 8.1pc and urban inflation was at 13.2pc.

Topline Securities, a brokerage firm in Karachi, said in a note that the data was “in line with our expectations”, while a Bloomberg estimate was 10.6pc.

Core inflation, which strips out volatile food and energy prices, was recorded at 11.7pc in urban areas and 16.9pc in rural areas.

Meanwhile, food inflation was noted to clock in at 1.56pc YoY and 4.67 MoM respectively. Previously, hikes in food prices were highlighted to be one of the most contributing factors to inflationary pressure.

Over the last five years, food inflation, as measured by PBS, has accumulated to more than 114pc, compounding by 22pc on an annual basis and exceeding overall inflation levels.

Urban MoM increase:

Food: Tomatoes (75.82pc), Fresh Vegetables (29.71pc), Milk Powder (17.34pc), Pulse Gram (15.35pc), Besan (13.31pc), Chicken (9.89pc), Pulse Moong (8.75pc) and Wheat Flour (8.23pc).

Non-food: Liquified Hydrocarbons (18.29pc), Hospitals Services (4.01pc), Hosiery (3.31pc), and Motor Fuel (2.65pc).

Rural MoM increase:

Food: Tomatoes (103.81pc), Milk Powder (21.19pc), Pulse Gram (13.69pc), Fresh Vegetables (11.35pc) and Besan (11.11pc).

Non-food: Liquified Hydrocarbons (6.98pc), Construction Input Items (6.50pc), Marriage Hall Charges (4.30pc), Mechanical Services (3.12pc), and Cotton Cloth (2.79pc).