ISLAMABAD, Jun 4 (NNN-APP) – Pakistan’s consumer price index (CPI), increased by 11.8 percent in May, compared to the same month last year, marking the lowest inflation rate in 30 months, according to data released by the Pakistan Bureau of Statistics (PBS), yesterday.
The notable drop in the CPI was released a week before the country’s central bank is set to review the key interest rate, which is at a historic high of 22 percent.
Since May, 2022, Pakistan has been grappling with inflation rates exceeding 20 percent and hitting 38 percent in May, 2023, after the country implemented reforms under an International Monetary Fund (IMF) bailout programme.
The data showed that, consumer prices fell by 3.2 percent month-on-month in May, compared to a decrease of 0.4 percent in the previous month, the largest drop in over two years.
Pakistan’s finance ministry released its monthly economic report last week, projecting that, inflation might range between 13.5 percent and 14.5 percent in May, 2024.
The data showed that several items saw an increase in prices on a month-on-month basis, including potatoes, meat, milk powder, pulse grams, plastic products, beverages, beans, eggs, cooking oil, medical services, transport services and books.
Conversely, some items experienced significant price decreases over the previous month, including tomatoes, onions, chicken, wheat flour, fresh fruits, liquified hydrocarbons, electricity charges, motor fuel, and communication apparatus.
On a year-on-year basis, several items experienced a significant increase in prices, including gas charges, electricity charges, transport services, onions, tomatoes, condiments, spices beans, fish, vegetables and education costs.
On the other hand, items whose prices declined compared to the previous year included wheat flour, chicken, cooking oil, fresh fruits, vegetable cooking oil, eggs, and liquified hydrocarbons.
Local analysts, commenting on the report said that, the reduction in inflation rates is expected to provide relief to consumers and businesses alike, adding that, the upcoming central bank meeting and ongoing economic policies would play a pivotal role in determining the future trajectory of inflation and overall economic stability.– NNN-APP
