Higher Food Prices Push Annual Inflation to Record High of 38% in May

The Consumer Price Index (CPI)-based inflation increased to 38 percent on a year-on-year basis in May 2023 as compared to an increase of 36.4 percent in the previous month and 13.8 percent in May 2022, says Pakistan Bureau of Statistics (PBS).

The inflation reading for May is the highest-ever recorded in Pakistan, breaking the previous record of 36.4 percent set in April.

On a month-on-month (MoM) basis, it increased to 1.6 percent in May 2023 as compared to an increase of 2.4 percent in the previous month and an increase of 0.4 percent in May 2022.

Average CPI inflation for July-May 2022-23 stood at 29.16 percent compared to 11.29 percent during the same period of last year.

CPI inflation Urban increased to 35.1 percent YoY in May 2023 as compared to an increase of 33.5 percent in the previous month and 12.4 percent in May 2022. On an MoM basis, it increased to 1.5 percent in May 2023 as compared to an increase of 2.0 percent in the previous month and an increase of 0.3 percent in May 2022.

CPI inflation Rural increased to 42.2 percent YoY in May 2023 as compared to an increase of 40.7 percent in the previous month and 15.9 percent in May 2022. On an MoM basis, it increased to 1.7 percent in May 2023 as compared to an increase of 3.0 percent in the previous month and an increase of 0.6 percent in May 2022.

The Sensitive Price Index (SPI) inflation on YoY increased to 43.0 percent in May 2023 as compared to an increase of 42.1 percent a month earlier and 14.1 percent in May 2022. On an MoM basis, it increased by 1.3 percent in May 2023 as compared to an increase of 2.7 percent a month earlier and an increase of 0.6 percent in May 2022.

The Wholesale Price Index (WPI) inflation on YoY basis increased to 32.8 percent in May 2023 as compared to an increase of 33.4% a month earlier and an increase of 29.6 percent in May 2022. On an MoM basis, it increased by 1.0 percent in May 2023 as compared to an increase of 0.1 percent a month earlier and an increase of 1.4 percent in the corresponding month of last year i.e. May 2022.

Core inflation (NFNE)

Measured by non-food non-energy Urban increased to 20.0 percent YoY in May 2023 as compared to an increase of 19.5 percent in the previous month and 9.7 percent in May 2022. On an MoM basis, it increased by 1.2 percent in May 2023 as compared to an increase of 1.8 percent in the previous month, and an increase of 0.7 percent in the corresponding month of last year i.e. May 2022.

Measured by non-food non-energy Rural increased to 26.9 percent YoY in May 2023 as compared to an increase of 24.9 percent in the previous month and 11.5 percent in May 2022. On an MoM basis, it increased by 2.5 percent in May 2023 as compared to an increase of 2.7 percent in the previous month, and an increase of 0.9 percent in the corresponding month of last year i.e. May 2022.

Core inflation (Trimmed)

Measured by a 20 percent weighted trimmed mean Urban increased to 30.5 percent YoY in May 2023 as compared to 28.6 percent in the previous month and 10.7 percent in May 2022. On an MoM basis, it increased by 1.5 percent in May 2023 as compared to an increase of 1.5 percent in the previous month and an increase of 0.8 percent in the corresponding month of last year i.e. May 2022.

Measured by a 20 percent weighted trimmed mean Rural increased to 38.8 percent YoY in May 2023 as compared to 37.3 percent in the previous month and 14.1 percent in May 2022. On an MoM basis, it increased to 2.0 percent in May 2023 as compared to an increase of 2.0 percent in the previous month and an increase of 1.4 percent in the corresponding month of last year i.e. May 2022.