According to the Pakistan Bureau of Statistics (PBS), Pakistan’s Consumer Price Index-based inflation (CPI) climbed by 27.3 per cent on a year-over-year basis in August 2022 as opposed to an increase of 24.9 per cent the previous month and 8.4 per cent in August 2021.
Inflation has increased by an average of 26.1 per cent in the first two months of the current fiscal year 2023 compared to 8.36 per cent in 2022. August’s inflation rate was the highest since November 1973.
According to brokerage house Arif Habib Limited (AHL) the Consumer Price Index (CPI) for the month of Aug’22 clocked in at 27.26 per cent YoY (+2.45 per cent MoM). This takes 2MFY23 average inflation to 26.1 per cent compared to 8.36 per cent in 2MFY22.
CPI inflation
Urban
In August 2022, urban CPI inflation was 26.2 per cent on an annual basis, up from 8.3 per cent in August 2021 and 23.6 per cent the month before.
It climbed by 2.6 per cent month over month in 2022, compared to 4.5 per cent the month before and 0.5 per cent in August 2021.
Rural
In addition, rural CPI inflation reached 28.8 per cent on an annual basis in August 2022, up from 8.4 per cent in August 2021 and 26.9 per cent in the preceding month.
In August 2022, it climbed by 2.2 per cent month over month, compared to 4.2 per cent the month before and 0.7 per cent in August 2021.
Further increase expected
Rising inflation has become a major worry for Pakistan’s economy, which is already experiencing a loss of foreign exchange reserves.
In the midst of severe flash floods that have resulted in at least 1,100 fatalities, extensive destruction, and millions of displaced people, experts have cautioned that the country will experience additional increases in food costs.
