Pakistan records 13.8 per cent inflation in May

The latest data provided by the Pakistan Bureau of Statistics (PBS) on June 1, inflation continued to rise in May 2022, with the Consumer Price Index (CPI)-based reading coming in at 13.8 per cent year on year, up from 13.4 per cent the previous month and 10.9 per cent in May 2021.

In May 2022, inflation climbed by 0.44 per cent month over month, compared to 1.6 per cent the previous month and 0.1 per cent in May 2021. This brings average inflation in 11MFY22 to 11.29 per cent year over year, up from 8.83 per cent in 11MFY21.

Rising prices have emerged as a major source of concern for the economy of the South Asian country, which is grappling with dwindling foreign exchange reserves and a growing import bill.

The State Bank of Pakistan (SBP) hiked the main interest rate by 150 basis points to 13.75 per cent last month in an attempt to combat economic headwinds.

The existing administration, on the other hand, has indicated that it will partially remove subsidies by raising petroleum product tariffs by Rs30 per liter, a move that is projected to raise inflation.

As per a report from Brecorder, on a month-on-month basis, Inflation in Urban areas increased by 0.3 per cent in May 2022 as compared to an increase of 1.6per cent in the previous month and increase of 0.2per cent in May 2021.

In the meantime, CPI inflation in urban areas grew 12.4 per cent year over year in May 2022, compared to 12.2 per cent the previous month and 10.8 per cent in May 2021.

It climbed by 0.3 per cent month over month in May 2022, compared to a 1.6 per cent increase the previous month and a 0.2 per cent increase in May 2021.

In rural areas, CPI inflation climbed by 15.9per cent year over year in May 2022, compared to 15.1 per cent the previous month and 10.9 per cent in May 2021. It climbed by 0.6 per cent month over month in May 2022, compared to an increase of 1.6 per cent the previous month and a fall of -0.03 per cent in May 2021.

In May 2022, the SPI inflation grew by 14.1 per cent year over year, compared to 14.2 per cent a month earlier and 19.7 per cent in May 2021. On a month-over-month basis, it climbed by 0.6 per cent in May 2022, compared to 1.5 per cent a month earlier and 0.8 per cent in May 2021.