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Friday, September 02, 2022
5 Safar 1444
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Samaa English
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PAKISTAN INFLATION INCREASES TO 49 YEAR HIGH OF 27.3%

Rural population hit stronger; food inflation rises to 29.5%
Shakeel Ahmed about 17 hours ago


Photo: SAMAA/file

 * 

The inflation rate in Pakistan increased to a 49-year high of 27.3% in August
2022, with the rural population taking a heavier brunt. While the inflation for
urban areas was recorded at 26.2%, the rate in rural areas was recorded to be
the highest at 28.8%.

Data released by the Federal Bureau of Statistics shows that the inflation rate
in the country increased by 2.4% during August on a month-on-month basis.

The year-on-year CPI — which is the general measure of inflation – stood at
27.3% in August 2022 — the highest in 49 years.

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This is the highest inflation since November 1973, experts and a report by Arif
Habib Limited said.

The inflation for the food group was recorded at 29.5% in August on a
year-on-year basis.

Inflation in the housing group was also above the headline inflation at 27.6%.
Food and housing group items weigh heavily in the basket of around 100 items
used for measuring inflation with 34.6% and 23.6% share, respectively.

All 12 but one groups of CPI have entered double-digit inflation with clothing
and footwear at 17.6%, restaurants and hotels at 27.4%, transport 62%, household
equipment 21.9%, education 10.0%, health 11.9%, communication 1.2%, recreation
and culture 21.8%, alcoholic beverages and tobacco 25.8%, and miscellaneous at
20.0%.

This simply means that while communication remains cheaper in Pakistan, meeting
food, housing, and transport needs is becoming more expensive and inflation in
these group remains even higher than the average inflation of 27.3%.

Education and health now also cost more though their cost has not increased as
much as your food or fuel bill.

On a month-on-month basis, food items have contributed heavily to the rising
inflation with tomatoes becoming 52.85% expensive in August compared to July.

The overall price of vegetables rose by 13.44%, moong dal rose by 15.27%, dal
mash by 12.47%, dal masoor by 11.76%, dal chana by 6%, eggs by 7.53%, and besan
by 6.5%.

The price of potatoes increased by 5%, and cooking oil by 2.5%. However, fruits
became cheaper by 20%, chicken by 11.54%, and motor fuel by 2.60%.

Electricity costs increased 19.73% in August, while ready-made garments soared
by 8% and construction materials by 7.5%.


SHARP INCREASE SINCE MAY

Inflation in Pakistan has increased since May this year on the back of rising
global commodity prices and increasing fuel import costs.

The Pakistani rupee also came under pressure due to political and economic
uncertainty.

The inflation rate stood at 13.8% in May but rose sharply to 21.3% in June and
has constantly been rising. In July inflation was recorded at 24.9%, which was
the highest in 14 years.

A Flourish chart


INFLATION






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