ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) in Pakistan witnessed a contraction of 8.3 percent on a Year-on-Year (YoY) basis in November 2020, according to data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.
The overall CPI inflation increased by 8.3 percent YoY in November 2020, showing a slight improvement from the 8.9 percent increase in the previous month and a significant decrease from the 12.7 percent recorded in November 2019.
On a month-on-month (MoM) basis, the CPI inflation rose by 0.8 percent in November 2020, compared to a 1.7 percent increase in the previous month and a 1.3 percent increase in November 2019.
Breaking down the data, urban areas saw a 7.0 percent YoY increase in CPI inflation in November 2020, a decrease from the 7.3 percent in the previous month and a significant drop from the 12.1 percent recorded in November 2019. On an MoM basis, urban CPI inflation increased by 0.6 percent in November 2020, down from a 1.3 percent increase in the previous month and a 1.0 percent increase in November 2019.
In rural areas, CPI inflation increased by 10.5 percent YoY in November 2020, showing a decline from the 11.3 percent recorded in the previous month and a significant drop from the 13.6 percent in November 2019. On an MoM basis, rural CPI inflation increased by 1.1 percent in November 2020, down from a 2.4 percent increase in the previous month and a 1.9 percent increase in November 2019.
The Sensitive Price Indicator (SPI) inflation on a YoY basis increased by 9.9 percent in November 2020, showing a decline from the 12.3 percent increase a month earlier and a substantial decrease from the 20.2 percent recorded in November 2019. On an MoM basis, SPI inflation increased by 1.1 percent in November 2020, down from a 3.0 percent increase a month earlier and a 3.7 percent increase in November 2019.
The Wholesale Price Index (WPI) inflation on a YoY basis increased by 5.0 percent in November 2020, compared to a 5.1 percent increase a month earlier and an 11.2 percent increase in November 2019. On an MoM basis, WPI inflation decreased by 0.9 percent in November 2020, compared to a 2.9 percent increase a month earlier and a 0.8 percent decrease in the corresponding month of the previous year (November 2019).
The contraction in the CPI is a positive development, reflecting a moderation in inflationary pressures. The government and relevant authorities will closely monitor these trends, and measures may be taken to ensure sustained economic stability in the coming months.