Business

Inflation in Pakistan Hits Highest Point in 75-Year History

Pakistan’s Consumer Price Index (CPI)-based inflation increased to a historic high of 35.4% on a year-on-year (YoY) basis in March 2023 as compared to an increase of 31.6% in February 2023 and 12.7% in March 2022.

At 35.4%, this is the highest inflation reading recorded in Pakistan since April 1965 when the same metric was first recorded.

This is the second consecutive month that Pakistan has faced record-breaking (CPI) inflation. February’s CPI of 31.6% was also the highest inflation reading back then.

According to Arif Habib Limited (AHL), this is the highest YoY inflation since the available data i.e. July 1965. This takes 9MFY23 average inflation to 27.3% compared to 10.8% in 9MFY22.

CPI inflation (Urban)

CPI inflation (Urban) increased to 33.0% on a year-on-year basis in March 2023 as compared to an increase of 28.8% in the previous month and 11.9% in March 2022. On a month-on-month basis, it increased to 3.9% in March 2023 as compared to an increase of 4.5% in the previous month and an increase of 0.7% in March 2022.

CPI inflation (Rural)

CPI inflation (Rural) increased to 38.9% on a year-on-year basis in March 2023 as compared to an increase of 35.6% in the previous month and 13.9% in March 2022. On a month-on-month basis, it increased to 3.5% in March 2023 as compared to an increase of 4.0% in the previous month and an increase of 1.0% in March 2022

SPI inflation

SPI inflation on YoY increased to 40.4% in March 2023 as compared to an increase of 33.6% a month earlier and 13.0% in March 2022. On an MoM basis, it increased by 5.8% in March 2023 as compared to an increase of 3.7% a month earlier and an increase of 0.6% in March 2022.

WPI inflation

WPI inflation on YoY basis increased to 37.5% in February 2023 as compared to an increase of 36.4% a month earlier and an increase of 23.8% in March 2022. On an MoM basis, it increased by 4.7% in March 2023 as compared to an increase of 8.2% a month earlier and an increase of 3.9% in the corresponding month of last year i.e. March 2022.

Core inflation (NFNE)

Measured by non-food non-energy Urban increased to 18.6% on (YoY) basis in March 2023 as compared to an increase of 17.1% in the previous month and 8.9% in March 2022. On an MoM basis, it increased by 2.5% in March 2023 as compared to an increase of 2.2% in the previous month, and an increase of 1.2% in the corresponding month of last year i.e. March 2022.

Measured by non-food non-energy Rural increased to 23.1% on (YoY) basis in March 2023 as compared to an increase of 21.5% in the previous month and 10.3% in March 2022. On an MoM basis, it increased by 2.4% in March 2023 as compared to an increase of 2.6% in the previous month, and an increase of 1.1% in the corresponding month of last year i.e. March 2022.

Core inflation (Trimmed)

Measured by a 20% weighted trimmed mean Urban increased to 28.7% on (YoY) basis in March 2023 as compared to 25.1% in the previous month and 10.5% in March 2022. On an MoM basis, it increased by 2.7% in March 2023 as compared to an increase of 2.9% in the previous month and an increase of 0.8% in the corresponding month of last year i.e. March 2022.

Measured by a 20% weighted trimmed mean Rural increased to 35.0% on (YoY) basis in March 2023 as compared to 31.6% in the previous month and 11.7% in March 2022. On an MoM basis, it increased to 2.9% in March 2023 as compared to an increase of 3.9% in the previous month and an increase of 0.8% in the corresponding month of last year i.e. March 2022.

Share
Published by
ProPK Staff