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Consumer Inflation Drops to 8.82% in April 2019

Pakistan’s inflation eased to 8.82 percent in April after having peaked to 9.41 percent in the previous month, Pakistan Bureau of Statistics reported on Thursday.

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After having peaked to a five year high of 9.41 percent in March, on account of rupee depreciation and rise in energy prices, the slight decline in prices of essential consumer items helped slow down the CPI in April. This could weaken International Monetary Fund’s (IMF) case for a further increase in the discount rate.

The consumer price index (CPI) inflation increased by 1.3 percent in April 2019 as compared to an increase of 1.4 percent in the previous month and an increase of 1.8 percent in the corresponding month a year earlier.

According to analysts, the decline was expected with tomato prices coming down.

Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0% on (YoY) basis in April 2019 as compared to an increase of 8.5% in the previous month and 7.0% in April 2018.

The food items which witnessed a decrease in price included:

  • Tomatoes which were down by (41.42%),
  • Eggs (19.88%),
  • Wheat (1.97%),
  • Gram Whole (1.20%),
  • Pulse Gram (0.90%),
  • Wheat Product (0.80%),
  • Wheat Flour (0.77%),
  • Beans (0.54%),
  • Dry Fruit (0.53%),
  • Besan (0.45%),
  • Pulse Mash (Washed) (0.37%).

The food items whose prices increased the most in April included:

  • Fresh Fruits (24.21%),
  • Fresh Vegetables (10.93%),
  • Chicken (9.90%),
  • Sugar (6.76%),
  • Potatoes (6.08%),
  • Onions (4.87%),
  • Gur (2.97%),
  • Pulse Moong (2.67%),
  • Cooking Oil (1.83%),
  • Vegetable Ghee (1.32%)
  • Meat (1.15%)

In July-April, average CPI inflation was recorded at 7 percent compared to 3.77 percent in the corresponding period of 2017/18.

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Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0% on (YoY) basis in April 2019 as compared to an increase of 8.5% in the previous month and 7.0% in April 2018.

On (MoM) basis, it increased by 1.0% in April 2019 as compared to an increase of 0.5% in the previous month, and an increase of 2.5% in the corresponding month of last year i.e. April 2018.

The central bank’s new forecast suggested that the headline CPI inflation would remain in the range of 6.5 to 7.5 percent for the current fiscal year.

While the government had projected a 6 percent annual inflation for 2018-19, CPI already breached that mark in February.

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  • what does it all concludes is it good or bad? is it going to get better or not?… if you would have mentioned that this article would have been more valuable to read for layman.

    Its Good BTW :)

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