Pakistan Bureau of Statistics (PBS) on Friday revealed that the headline inflation, measured by the Consumer Price Index (CPI), surged to a staggering 29.2 percent Year on Year (YoY) basis in November 2023.
This marks a notable increase from the 26.8% recorded in the previous month and the 23.8% reported in November 2022.
The CPI inflation, which encompasses both Urban and Rural areas, exhibited significant spikes across the board. In Urban areas, the YoY CPI inflation reached 30.4% in November 2023, compared to 25.5% in the previous month and 21.6% in November 2022. On a month-on-month basis, Urban inflation soared to 4.3%, a sharp rise from the 1.1% increase in the previous month and the 0.4% reported in November 2022.
Similarly, Rural areas experienced an uptick in YoY CPI inflation, reaching 27.5% in November 2023, compared to 28.7% in the previous month and 27.2% in November 2022. On a month-on-month basis, Rural inflation increased to 0.4%, a slight decrease from the 0.9% reported in the previous month and the 1.3% observed in November 2022.
The Sensitive Price Indicator (SPI) inflation on a YoY basis increased to 30.6% in November 2023, showing a slight improvement from the 34.2% recorded a month earlier and the 27.1% in November 2022. On a month-on-month basis, SPI inflation surged by 3.3% in November 2023, a notable increase from the 0.2% reported in the previous month and the 6.1% in November 2022.
The Wholesale Price Index (WPI) inflation on a YoY basis rose to 26.4% in November 2023, compared to 24.6% in the previous month and 27.7% in November 2022. On a month-on-month basis, WPI inflation increased by 1.4%, a significant rebound from the 1.9% decrease reported in the previous month and no change in the corresponding month of the previous year, November 2022.
Breaking down the inflation further, when measured by non-food non-energy categories, Urban areas experienced an 18.6% YoY increase in November 2023, compared to 18.5% in the previous month and 14.6% in November 2022. On a month-on-month basis, the increase was 0.9%, down slightly from the 1.2% reported in the previous month and the 0.8% in November 2022.
In Rural areas, the same category recorded a 25.9% YoY increase in November 2023, a slight decrease from the 26.7% in the previous month and a considerable rise from the 18.5% reported in November 2022. On a month-on-month basis, the increase was 1.4%, slightly up from the 1.0% reported in the previous month and the 2.1% in November 2022.
The 20% weighted trimmed mean, another measure of inflation, recorded a 22.9% YoY increase in Urban areas in November 2023, down from 24.6% in the previous month and up from 19.8% in November 2022. On a month-on-month basis, the increase was marginal at 0.1%, compared to 0.6% in the previous month and 0.5% in November 2022.
In Rural areas, the 20% weighted trimmed mean recorded a 27.9% YoY increase in November 2023, down from 30.4% in the previous month and up from 25.4% in November 2022. On a month-on-month basis, the increase was 0.5%, slightly down from the 0.7% reported in the previous month and the 1.8% in November 2022.
The surge in inflation raises concerns about the economic challenges facing Pakistan, with implications for consumers, businesses, and policymakers alike. Analysts are closely monitoring the situation, emphasizing the need for swift and effective measures to address the inflationary pressures on the economy.
