Islamabad, August 1, 2024 – Headline inflation in Pakistan rose by 11.1% in July 2024, according to the Pakistan Bureau of Statistics (PBS). This increase, based on the Consumer Price Index (CPI), highlights a significant economic challenge as the country navigates its fiscal and monetary policies.
The Pakistan Bureau of Statistics reported that the year-on-year headline inflation for July 2024 stood at 11.1%, compared to 12.6% in June 2024 and a staggering 28.3% in July 2023. On a month-on-month basis, inflation increased by 2.1% in July 2024, up from 0.5% in June 2024 and 3.5% in July 2023.
Urban and rural areas experienced differing inflation rates. Urban CPI inflation rose to 13.2% year-on-year in July 2024, down from 14.9% in June 2024 and 26.3% in July 2023. On a month-on-month basis, urban inflation increased by 2.0% in July 2024, compared to 0.6% in June 2024 and 3.6% in July 2023.
In rural areas of Pakistan, CPI inflation was 8.1% year-on-year in July 2024, down from 9.3% in June 2024 and 31.3% in July 2023. Month-on-month, rural inflation rose by 2.2% in July 2024, compared to 0.3% in June 2024 and 3.3% in July 2023.
The Sensitive Price Indicator (SPI) inflation, which reflects changes in the cost of essential goods, increased by 15.7% year-on-year in July 2024, down from 16.6% in June 2024 and 29.3% in July 2023. On a month-on-month basis, SPI inflation rose by 2.0% in July 2024, up from 1.3% in June 2024 and 2.8% in July 2023.
Wholesale Price Index (WPI) inflation also saw an uptick, rising by 10.4% year-on-year in July 2024, compared to 10.6% in June 2024 and 23.1% in July 2023. On a month-on-month basis, WPI inflation increased by 2.3% in July 2024, up from 0.4% in June 2024 and 2.5% in July 2023.
Core inflation, which excludes food and energy prices, presented a mixed picture. In urban areas, non-food non-energy (NFNE) inflation rose by 11.7% year-on-year in July 2024, down from 12.2% in June 2024 and 18.4% in July 2023. Month-on-month, it increased by 0.7% in July 2024, compared to 0.6% in June 2024 and 1.2% in July 2023.
In rural areas, NFNE inflation rose to 16.9% year-on-year in July 2024, slightly down from 17.0% in June 2024 and 24.6% in July 2023. Month-on-month, it increased by 1.1% in July 2024, compared to 0.9% in June 2024 and 1.2% in July 2023.
Core inflation measured by the 20% weighted trimmed mean remained stable in urban areas at 10.3% year-on-year in July 2024, unchanged from June 2024 but down from 21.7% in July 2023. Month-on-month, it increased by 1.2% in July 2024, compared to 0.6% in June 2024 and 1.9% in July 2023.
In rural areas of Pakistan, the 20% weighted trimmed mean inflation rose to 11.3% year-on-year in July 2024, up from 11.0% in June 2024 but down from 28.7% in July 2023. Month-on-month, it increased by 1.7% in July 2024, compared to 0.5% in June 2024 and 2.4% in July 2023.
These figures highlight the ongoing inflationary pressures in Pakistan, influenced by various factors including global commodity prices, exchange rate fluctuations, and domestic economic policies. The government and policymakers face the challenge of balancing inflation control with economic growth to ensure stability and prosperity for the country.