Islamabad, April 1, 2024 – Official data released on Monday revealed that Pakistan’s headline inflation surged by 20.7 percent year on year (YoY) in March 2024, reflecting ongoing challenges in the country’s economic landscape.
The Pakistan Bureau of Statistics (PBS) reported that Pakistan’s headline inflation, based on the Consumer Price Index (CPI) General, increased to 20.7 percent on a year-on-year basis in March 2024. This marks a slight decrease from the previous month’s figure of 23.1 percent and a significant drop from the 35.4 percent recorded in March 2023. On a month-on-month basis, the inflation rate increased to 1.7 percent in March 2024, compared to no change observed in the previous month and an increase of 3.7 percent in March 2023.
Breaking down the data further, CPI inflation Urban rose to 21.9 percent on a year-on-year basis in March 2024, up from 24.9 percent in the previous month and 33.0 percent in March 2023. On a month-on-month basis, it increased to 1.4 percent in March 2024, compared to an increase of 0.2 percent in the previous month and an increase of 3.9 percent in March 2023.
Similarly, CPI inflation Rural increased to 19.0 percent on a year-on-year basis in March 2024, compared to 20.5 percent in the previous month and 38.9 percent in March 2023. On a month-on-month basis, it increased to 2.1 percent in March 2024, compared to a decrease of 0.3 percent in the previous month and an increase of 3.5 percent in March 2023.
The Sensitive Price Indicator (SPI) inflation surged to 25.9 percent year-on-year in March 2024, compared to 30.4 percent a month earlier and 40.4 percent in March 2023. On a month-on-month basis, it increased by 2.1 percent in March 2024, compared to a decrease of 0.8 percent in the previous month and an increase of 5.8 percent in March 2023.
Furthermore, Wholesale Price Index (WPI) inflation on a year-on-year basis increased to 14.8 percent in March 2024, compared to 18.7 percent a month earlier and 37.5 percent in March 2023. On a month-on-month basis, it increased by 1.3 percent in March 2024, compared to an increase of 1.1 percent in the previous month and an increase of 4.7 percent in March 2023.
Measured by non-food non-energy indicators, urban inflation increased to 12.8 percent year-on-year in March 2024, compared to 15.5 percent in the previous month and 18.6 percent in March 2023. Similarly, rural inflation increased to 20.0 percent year-on-year in March 2024, compared to 21.9 percent in the previous month and 23.1 percent in March 2023.
The 20 percent weighted trimmed mean, used as another measure, showed that urban inflation increased to 14.8 percent year-on-year in March 2024, compared to 16.0 percent in the previous month and 28.7 percent in March 2023. Rural inflation, measured by the same indicator, increased to 18.4 percent year-on-year in March 2024, compared to 21.3 percent in the previous month and 35.0 percent in March 2023.
The significant rise in inflation across various indicators underscores the ongoing challenges faced by Pakistan’s economy. Rising prices have implications for households, businesses, and policymakers, necessitating measures to address inflationary pressures and ensure economic stability.
