Pakistan’s inflation rate slows to 5.7pc in January

ISLAMABAD: The Consumer Price Index (CPI)-based monthly inflation decelerated to 5.7pc in January 2021, from 8pc in the previous month, Pakistan Bureau of Statistics (PBS) reported on Monday.

A decrease in the prices of vegetables, pulses, eggs, spices and chicken helped bring down the consumer price index (CPI), the bureau said.

“Our efforts to reduce inflation are now showing results,” Prime Minister Imran Khan had tweeted on Sunday. “Consumer price index and core inflation are both now lower than when our government was formed,” he said.

Planning Minister Asad Umar also said on Twitter that inflation during January was down to 5.7pc, while core inflation was at 5.4pc, both lower than when the PTI government took over.

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In may be noted that with shortages in domestic production, inflation at the beginning of the current fiscal year stood at 9.3pc in July, easing down to 8.2pc in August before rebounding to 9pc in September. Since September, inflation is on a downward trajectory, giving some relief to the end consumers.

The average CPI in the seven months– between July and January FY21 — eased from last year’s 11.60pc to 8.19pc.

The decline in January inflation indicates that prices of essential food items will see a further decline in the next months.

The government has imported wheat and sugar to bridge shortfalls and improve its supplies in the market, whereas with the arrival of tomatoes and onions in the domestic market, their prices also posted a decline during the month under review.

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Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]
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