April inflation records double digit increase

April inflation records double digit increase

Pakistan’s headline inflation, based on the Consumer Price Index (CPI), witnessed a notable increase of 11.10 percent on a year-on-year (YoY) basis in April 2021, according to data released by the Pakistan Bureau of Statistics (PBS).

This surge represents a significant uptick from the 9.1 percent reported in the previous month, marking a concerning acceleration in the inflation rate.

Comparatively, in April 2020, the headline inflation had increased by 8.5 percent, indicating a considerable YoY rise over the past year.

On a month-on-month basis, the CPI increased by 1.0 percent in April 2021, compared to a 0.4 percent increase in the previous month and a decrease of 0.8 percent in April 2020.

Breaking down the data, the Urban CPI inflation increased by 11.0 percent on a YoY basis in April 2021, up from 8.7 percent in the previous month and 7.7 percent in April 2020. On a month-on-month basis, Urban CPI increased by 1.3 percent in April 2021, compared to a 0.3 percent increase in the previous month and a decrease of 0.7 percent in April 2020.

In rural areas, the CPI inflation surged by 11.3 percent on a YoY basis in April 2021, up from 9.5 percent in the previous month and 9.8 percent in April 2020. On a month-on-month basis, Rural CPI increased by 0.6 percent in April 2021, compared to a 0.5 percent increase in the previous month and a decrease of 1.1 percent in April 2020.

The Sensitive Price Indicator (SPI) inflation, which gauges the impact of price changes on a specific set of goods and services, increased by 21.3 percent YoY in April 2021. This is up from an increase of 18.7 percent in the previous month and a significant rise from the 9.3 percent reported in April 2020. On a month-on-month basis, SPI inflation increased by 0.4 percent in April 2021, compared to a 5.7 percent increase in the previous month and a decrease of 1.8 percent in April 2020.

The Wholesale Price Index (WPI) inflation, which measures changes in the prices of goods at the wholesale level, increased by 16.6 percent on a YoY basis in April 2021. This is up from an increase of 14.6 percent in the previous month and a substantial rise from the 4.9 percent reported in April 2020. On a month-on-month basis, WPI inflation decreased by 0.4 percent in April 2021, compared to a 3.7 percent increase in the previous month and a decrease of 2.0 percent in April 2020.

These inflation figures pose challenges for the Pakistani economy, indicating rising prices across various sectors. The government and relevant authorities may need to implement measures to address inflationary pressures and ensure economic stability. The evolving economic landscape, influenced by both domestic and global factors, will require careful monitoring to navigate potential risks and foster sustainable economic growth.