According to data released by the Pakistan Bureau of Statistics, Pakistan’s yearly inflation clocked in at 8.89 percent year-on-year in June showing an increase of 0.4 percent as compared to May 2019 mainly due to a slight slowdown in food price levels.
CPI inflation (general) increased by 8.9% on a year-on-year basis in June 2019 as compared to an increase of 9.1% in the previous month and 5.2% in June 2018. PBS noted that inflation rate for the fiscal year 2018-19 was registered at 7.34 percent
The average inflation between July-June FY19 rose to 7.34%, from 3.92% – highest since 2013-14 when it stood at 8.6%.
On a month-on-month basis, it increased by 0.4% in June 2019 as compared to an increase of 0.8% in the previous month and an increase of 0.6% in the corresponding month i.e. June 2018.
Core Inflation and Core Trimmed Inflation
Core inflation, measured by non-food non-energy CPI, increased by 7.2% on a yearly basis in June versus 7.2% in the previous month and 7.1% in June 2018.
Meanwhile, core trimmed inflation recorded an increase of 7.3% year-on-year in June as against to 7.5% in the previous month and by 5.4% in the same period last year.
CPI and WPI
The Consumer Price Index (CPI) and Wholesale Price Index (WPI) in June were recorded at 8.89% and 12.69% respectively as most of the essential items maintained an upward trend.
The data showed that out of a total of 89 items, prices of about 83 essential items increased year-on-year in June compared to a reduction in only six essential items. Likewise, prices of 81 major essential items went up month-on-month while prices of eight items fell.
Similarly, of the prices 112 items monitored by PBS for WPI, 106 increased year-on-year compared to a reduction in six. Similarly, the prices of only 11 items in the WPI declined in June when compared to the previous month (May 2019) while the prices of 101 items in the wholesale market increased.
On the other hand, WPI increased by 12.7% year-on-year in June, from 14% in May and 7.6%.
WPI inflation on YoY basis increased by 12.7% in June 2019 as compared to an increase of 14.0% a month earlier and an increase of 7.6% in June 2018. Similarly, Sensitive Price Indicator on YoY basis increased by 10.6pc in June versus 10.8pc a month earlier and 1.9% in the same period last year.