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Friday, May 17, 2024

Broke backs and breaking records: PBS reveals 27.3pc inflation in Aug 22

In August, Pakistan's inflation rose for the sixth consecutive month to a new high, with the devastating floods threatening to push prices even higher.

Data released by the Pakistan Bureau of Statistics (PBS) about inflation in August 2022 has created a sensation in national as well as international media. Inflation based on Consumer Price Index (CPI) hit 27.3 percent on a year-on-year (YoY) basis in August 2022 compared to 8.4 percent in August 2021 and 24.9 percent in July 2022.

CPI-based inflation increased by 2.4 percent in August 2022 as compared to 4.3 percent in the previous month on the basis of month-on-month, and 0.6 percent in August 2021, stated the Pakistan Bureau of Statistics (PBS).

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According to Arif Habib Limited, “CPI for the month of Aug’22 clocked-in at 27.26% YoY (+2.45% MoM). This takes 2MFY23 average inflation to 26.1% compared to 8.36% in 2MFY22. This is the highest inflation since Nov’1973.”

On YoY basis, CPI National for the month of August 2022 increased by 27.26 percent over August 2021. The Urban CPI recorded an increase of 26.24 percent while Rural CPI recorded an increase of 28.79 percent.

On MoM basis, CPI National for the month of August 2022 increased by 2.45 percent over July, 2022. The Urban CPI recorded an increase of 2.62 percent while Rural CPI recorded an increase of 2.19 percent.

Moreover, CPI inflation in rural areas hit 28.8 percent on year-on-year basis in August 2022 as compared to 26.9 percent in the previous month and 8.4 percent in Aug 2021.

On MoM basis, it increased by 2.2 percent in Aug 2022 as compared to 4.2 percent in the previous month and 0.7 percent in Aug 2021.

In August, Pakistan’s inflation rose for the sixth consecutive month to a new high, with the devastating floods threatening to push prices even higher.

The inflation report comes as the country confronts a possible food crisis as a result of the devastating flooding in the latter part of August, which would necessitate extra imports, putting additional strain on its already poor finances. Rice and cotton crops, as well as vegetables like onions and tomatoes, were all harmed.