The headline inflation based on Consumer Price Index (CPI) increased by 28.3 percent year on year (YoY) basis in January 2024, Pakistan Bureau of Statistics (PBS) revealed on Thursday.
According to the PBS data released on Thursday, the CPI inflation General, which measures the overall cost of living, rose to 28.3% in January 2024. This marked a slight decrease from the previous month’s figure of 29.7%, but a notable jump from the 27.6% recorded in January 2023.
The urban areas faced a higher inflation rate, with CPI inflation Urban increasing to 30.2% YoY in January 2024. The rural areas also experienced a significant surge, reaching 25.7% YoY. These figures represent increases from the previous month and the same period last year.
On a month-on-month (MoM) basis, the overall CPI inflation increased by 1.8% in January 2024, up from 0.8% in the previous month. The urban and rural areas both saw a 1.8% and 1.9% MoM increase, respectively.
The Sensitive Price Indicator (SPI) inflation, which measures the price changes of essential goods and services, increased to 36.2% YoY in January 2024. This reflects a continuous upward trend from the previous month and the same period last year.
Wholesale Price Index (WPI) inflation, focusing on the prices of goods at the wholesale level, rose to 27.0% YoY in January 2024. The WPI MoM figure increased by 1.5%, providing insights into the challenges faced by businesses in managing their production costs.
Breaking down the inflation figures further, the measured non-food non-energy inflation for both urban and rural areas showcased increases on both YoY and MoM bases, indicating a broader economic challenge beyond food and energy sectors.
The 20% weighted trimmed mean, another indicator of core inflation, displayed varying increases in both urban and rural areas on a YoY and MoM basis.
Economists and policymakers are expressing deep concerns over the persistent inflationary pressures. The soaring inflation rates can lead to reduced purchasing power, impacting citizens’ daily lives and potentially hindering economic growth.
As Pakistan grapples with this economic challenge, there is a growing call for comprehensive measures to address the root causes of inflation. Policymakers are urged to implement prudent fiscal policies, strengthen monetary management, and foster an environment conducive to sustainable economic growth.
The escalating inflation rates underscore the need for swift and effective actions to stabilize the economy, ensuring that citizens are shielded from the adverse effects of rising prices and creating a foundation for long-term economic resilience.
