Pakistan's Consumer Confidence Index drops in July amid rising inflation concerns

Pakistan’s Consumer Confidence Index (CCI) dropped to 40.1 points in July, down from 42.1 points in June, as reported in the latest survey released by the State Bank of Pakistan (SBP).

The survey revealed a decline in both current and expected economic conditions. The Current Economic Conditions (CEC) index decreased from 42.2 to 38.7 points, while the Expected Economic Conditions (EEC) index also saw a slight dip, falling to 41.4 points from 41.9 in June.

Inflation expectations have risen significantly, reaching 68.8 points in July, compared to 65.6 points the previous month. However, concerns regarding unemployment showed some improvement, decreasing to 62 points from 67.1 in June.

The CCI is based on consumer sentiment, reflecting both personal financial situations and broader economic outlooks. The index is calculated on a scale of 0-100, with values above 50 signaling optimism and those below 50 indicating a more pessimistic view of the economy.

The report provides insight into consumers’ perceptions of the current economic environment and their expectations for the next six months, signaling ongoing economic uncertainty amid rising inflation.