Pakistan is Among Top Three Countries in Terms of Inflation: Spectator Index

Pakistan is ranked at number three among countries with the highest inflation, with an inflation rate of 5 percent by the end of August, according to The Spectator Index.

Inflation in Pakistan is higher than regional countries including India and China with 4.5 percent and 2.2 percent respectively.

The inflation rate is high mainly due to a price-hike in essential commodities and services in the local market on the back of high seasonal demands ahead of Eid-ul-Azha. Depreciation of Rupee has had a major impact on prices of commodities.

The new government reduced petroleum products prices a couple of weeks ago, which already contained the expected impact on inflation. The imposition of duties and the recent increase in gas prices might sustain inflation rate in coming months though. The stability of Rupee’s value against Dollar will also play a pivotal role in settling prices of commodities and inflation rate.

PBS Data

Pakistan Bureau of Statistics stated that CPI inflation increased by 5.8% year-on-year in August 2018 as compared to an increase of 5.8% in the previous month and 3.4% in August 2017.

Inflation increase on food items:

Tomatoes (62.43%), Dry Fruits (11.34%), Meat (10.48%), Spices (9.34%), Rice (8.63%), Sweat Meat (7.51%), Tea (6.16%), Jam Tomato ketchup & Pickles (6.06%), Readymade Food (5.95%), Fresh Vegetables (5.87%), Condiments (5.85%), Fish (5.80%), and Honey (5.70%).

Inflation increase on non-food items:

Kerosene Oil (38.54%), Motor Fuel (27.95%), Transport Services (14.16%), Education (12.93%), Motor Vehicles (11.51%), Newspapers (10.96%), Water Supply (10.63%), Construction Input Items (10.00%), Medical Tests (9.35%), Utensils (9.31%), Cosmetics (9.01%), Construction Wage Rates (8.82%), Postal Services (8.79%), Stationary (8.64%), Doctor (MBBS) Clinic Fee (8.35%) and Furniture (8.00%).