Pakistan’s inflation rate remained high as the Consumer Price Index (CPI) increased by 28.3% year-on-year (YoY) and 1.8% month-on-month (MoM) in January 2024, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The CPI inflation rate was slightly lower than the 29.7% YoY and 0.8% MoM recorded in December 2023, but still higher than the 27.6% YoY and 2.9% MoM recorded in January 2023.
The CPI inflation rate has been above 20% since July 2023, reflecting the persistent upward pressure on the prices of essential commodities.
The urban CPI inflation rate was 30.2% YoY and 1.8% MoM in January 2024, compared to 30.9% YoY and 0.7% MoM in December 2023 and 24.4% YoY and 2.4% MoM in January 2023.
The rural CPI inflation rate was 25.7% YoY and 1.9% MoM in January 2024, compared to 27.9% YoY and 1.0% MoM in December 2023 and 32.3% YoY and 3.6% MoM in January 2023.
The main drivers of inflation in January 2024 were food and beverages, which increased by 37.4% YoY and 3.5% MoM, and housing, water, electricity, gas and other fuels, which increased by 28.9% YoY and 3.1% MoM.
The prices of chicken, tomatoes, onions, eggs, fresh vegetables, pulse gram, fish, tea, dry fruits, fresh fruits, pulse moong, gur, sugar, besan and meat increased significantly on a MoM basis, while the prices of potatoes, cooking oil, vegetable ghee and mustard oil decreased slightly.
On a YoY basis, the prices of tomatoes, cigarettes, fresh vegetables, condiments and spices, sugar, beans, gur, beverages, tea, eggs, pulse mash, wheat flour, potatoes, dry fruits, sweetmeat, dessert preparation, milk powder, rice, pulse masoor, pan prepared, readymade food and wheat products increased sharply, while the prices of mustard oil, onions and vegetable ghee decreased marginally.
The prices of non-food items also increased in January 2024, mainly due to the rise in the prices of communication services, woolen readymade garments, electricity charges, liquified hydrocarbons, marriage hall charges, personal grooming services, solid fuel, garbage collection and furniture and furnishing on a MoM basis, and the decrease in the prices of motor fuel, construction input items, motor vehicles and motor vehicle accessories.
The Sensitive Price Index (SPI), which tracks the prices of 51 essential items on a weekly basis, increased by 36.2% YoY and 2.0% MoM in January 2024, compared to 35.3% YoY and 3.8% MoM in December 2023 and 30.5% YoY and 1.3% MoM in January 2023.
The Wholesale Price Index (WPI), which measures the change in the prices of goods traded in bulk, increased by 27.0% YoY and 1.5% MoM in January 2024, compared to 27.3% YoY and no change in December 2023 and 28.5% YoY and 1.8% MoM in January 2023.
The high inflation rate has eroded the purchasing power of the consumers and affected their living standards, especially the low-income and vulnerable groups.
