Pakistan recorded a 9.6% year-on-year increase in the national consumer price index (CPI) inflation in August compared to a 11.1% increase in July and 27.4% in in August, marking the lowest inflation rate since October 2021.
According to data issued by the Pakistan Bureau of Statistics (PBS) on Monday, the monthly inflation rate saw an increase to 0.4% compared to 2.1% in July and 1.7% in August 2023. In terms of region, it said, urban inflation had increased to 11.7% year-on-year in August compared to 13.2% last month. In rural areas, inflation increased to 6.7% year-on-year in August compared to 8.1% in July and 30.9% in August 2023.
The CPI measures household inflation and includes statistics about price changes for various categories of everyday expenditures. The PBS data showed that, month-on-month, the biggest price hikes in food items were witnessed with onions (22.84%); chicken (13.62%); eggs (12.39%); fresh vegetables (12.25%); besan (4.88%); pulse gram (4.55%); gram whole (3.82%); potatoes (2.90%); pulse moong (2.83%); fresh milk (1.27%); milk products (1.20%); vegetable ghee (1.10%); and gur (1.04%). The biggest price hikes in non-food items, meanwhile, were observed in motor vehicle tax (168.79%); stationery (5.08%); hosiery (3.41%); personal effects (2.47%); dopatta (1.85%); drugs and medicines (1.35%); and readymade garments (1.24%).
At the same time, the biggest declines in prices of food items were witnessed in fresh fruits (13.10%); tomatoes (8.09%); wheat flour (3.87%); wheat (3.40%); and dessert preparation (0.69%). In non-food items, the biggest declines were witnessed in electricity charges (6.45%); motor fuel (1.78%); liquefied hydrocarbons (1.50%) and transport services (1.05%).
A day earlier, Prime Minister Shehbaz Sharif had expressed satisfaction over the falling rate of inflation and improvements in various economic indicators, crediting the government’s finance team for achieving stability.