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Tag: inflation

  • Headline inflation increases by 8.8 percent in April 2019

    Headline inflation increases by 8.8 percent in April 2019

    ISLAMABAD: The headline inflation has surged by 8.8 percent on year on year (YoY) in April 2019 as compared to an increase of 9.4 percent in previous month and 3.7 percent in April 2018, said Pakistan Bureau of Statistics (PBS) on Thursday.

    The Consumer Price Index (CPI) based inflation on month-on-month basis, it increased by 1.3 percent in April 2019 as compared to an increase of 1.4 percent in the previous month and an increase of 1.8 percent in corresponding month i.e. April 2018.

    Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0 percent on (YoY) basis in April 2019 as compared to an increase of 8.5 percent in the previous month and 7.0 percent in April 2018. On (MoM) basis, it increased by 1.0 percent in April 2019 as compared to an increase of 0.5 percent in previous month, and an increase of 2.5 percent in corresponding month of last year i.e. April 2018.

    Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.2 percent on (YoY) basis in April 2019 as compared to 7.9 percent in the previous month and by 5.0 percent in April 2018. On (MoM) basis, it increased by 0.9 percent in April 2019 as compared to an increase of 0.4 percent in the previous month and an increase of 1.6 percent in corresponding month of last year i.e. April 2018.

    The Sensitive Price Indicator (SPI) inflation on YoY basis increased by 9.3 percent in April 2019 as compared to an increase of 8.8 percent a month earlier and a decrease of 0.5 percent in April 2018.

    On MoM basis, it increased by 0.9 percent as compared to an increase of 1.6 percent in the previous month and an increase of 0.4 percent in corresponding month of last year i.e. April 2018.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 13.8 percent in April 2019 as compared to an increase of 12.6 percent a month earlier and an increase of 4.0 percent in April 2018.

    WPI inflation on MoM basis increased by 2.3 percent in April 2019 as compared to an increase of 1.7 percent a month earlier and an increase of 1.3 percent in corresponding month of last year i.e. April 2018.

  • Inflation increases by 17.15pc for higher income group

    Inflation increases by 17.15pc for higher income group

    KARACHI: The prices of essential items has increased by 17.15 percent for higher income group above Rs35,000, according to weekly Sensitive Price Indicator (SPI) issued by Pakistan Bureau of Statistics (PBS).

    The PBS said that the inflation of the income group above Rs35,000 was increased by 17.15 percent by week ended April 25, 2019 as compared with same week a year ago.

    The PBS computes the weekly SPI with base 2007-08=100 covering 17 urban centres and 53 essential items for all income groups/quintiles and combined.

    The PBS calculates SPI for income groups included Rs8,000; between Rs8,001 – Rs12,000; Rs12,001-Rs18,000; Rs18,001-Rs35,000; and above Rs35,000. The average inflation for all income group increased by 12.91 percent by week ended April 25, 2018 as compared with corresponding week last year. However, the average inflation increased by 0.37 percent over the previous week ended Aril 18, 2019.

    During the week under review as compared with previous week, around 20 items registered increase in their prices. Some of these items are included: tomatoes, onions, potatoes, egg hen, bananas, pulse moong, sugar, pulse mash, garlic, pulse gram, tea prepared, mutton etc.

    However, 10 items registered decline in their prices during the week, which included: chicken farm, LPG cylinder 11-kg, wheat, wheat flour, firewood, red chillie, cooking oil, vegetable ghee etc.

    Average prices of 22 items remained unchanged during the week under review.

    According to PBS the SPI was increasing for the last four consecutive weeks. The SPI is major component for headline inflation i.e. Consumer Price Index (CPI). The movement of SPI sets the monthly CPI.

  • Sensitive price inflation grows by 12.02 percent

    Sensitive price inflation grows by 12.02 percent

    KARACHI: The prices of essential items have registered 12.02 percent growth by week ended April 11, 2019 as compared with corresponding week last year, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The Sensitive Price Indicator (SPI) based inflation has shown the increase with the average inflation for all income groups.

    The weekly data revealed that the inflation grew by 16.31 percent for income group above Rs35,000. While the SPI based inflation grew by 12.89 percent for the income group range between Rs18,001 – Rs35,000.

    Meanwhile, the inflation increased by 8.9 percent, 9.07 percent and 8.97 percent for income group up to Rs8,000, Rs8,001-Rs12.000 and Rs12,001 – Rs18,000, respectively.

    The PBS calculates the weekly SPI with base 2007-08=100 covering 17 urban centres and 53 essential items for all income groups/quintiles and combined has been computed.

  • World Bank projects Pakistan’s growth to decelerate in FY19, FY20

    World Bank projects Pakistan’s growth to decelerate in FY19, FY20

    KARACHI: World Bank has projected lower GDP growth for Pakistan during two fiscal years i.e. 2018/2019 and 2019/2020 to 3.4 percent and 2.7 percent, respectively.

    The World Bank in a report released on Sunday, said that growth for Pakistan is projected to decelerate to 3.4 percent in FY19 and to 2.7 percent in FY20, as the government tightens fiscal and monetary policies.

    “While domestic demand growth will slow down immediately, net ex¬ports will only increase gradually,” it added.

    The World Bank said that as macroeconomic conditions improve, and a package of structural reforms in fiscal management and competitiveness is implemented, growth is expected to recover to 4.0 percent in 2020/2021.

    “This baseline scenario assumes stable international oil prices and reduced political and security risks,” it added.

    Inflation is expected to rise to 7.1 percent (average) in FY19 and projected to reach 13.5 percent in FY20 as a result of further exchange rate depreciation pass-through.

    The trade deficit is projected to remain elevated during 2018/2019, but to narrow in 2019/2020 and 2020/2021 as the impacts of currency depreciation, domestic demand compression, and other regulatory measures to curb imports set in.

    Remittances are projected to finance over 70 percent of the trade deficit.

    FDI, multilateral and bilateral debt-creating flows as well as financing from international markets are expected to be the main financing sources of the current account in the near to medium term.

    The fiscal deficit is projected to increase to 6.9 percent in 2018/2019 and to remain high during next two fiscal years, a result of large interest payments and a slow increase in domestic revenues.

    Public debt to GDP is expected to cross 80 percent in 2018/2019 and to remain elevated in the next two years, increasing Pakistan’s exposure to debt-related shocks.

    The pace of poverty reduction is expected to continue to slow-down in FY19 and FY20, following the projected growth deceleration and higher inflation rates.

    Together with the macroeconomic adjustment expected over the next two years, there is an urgent need to implement structural reforms to support the growth rebound from FY21 onwards.

    Economic uncertainty has increased due to protracted negotiations with the IMF.

    In addition, recent regional tensions have had an impact on risk perceptions.

    The low reserves position and high debt-ratios limit the buffers that Pakistan could use to absorb external shocks (such as an increase in US interest rates) and may negatively impact the government’s ability to access international markets.

    Reforms to put the country on a stable growth path include increased exchange rate flexibility, improved competitiveness and lower cost of doing business.

    On the revenue front, reforms to improve tax administration, widen the tax base and facilitate tax compliance are critical.

    Higher inflation rates may jeopardize recent gains in poverty reduction, since poor households in urban areas are particularly affected by increases in prices, as shown by the most recent inflation hike during the 2007-08 food price crisis.

  • Headline inflation increases by 9.4pc in March

    Headline inflation increases by 9.4pc in March

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 9.4 percent on year-on-year basis in March, 2019 as compared to an increase of 8.2 percent in the previous month and 3.2 percent in March 2018.

    The Pakistan Bureau of Statistics (PBS) on Monday said that on month-on-month basis, it increased by 1.4 percent in March 2019 as compared to an increase of 0.6 percent in the previous month and an increase of 0.3 percent in corresponding month i.e. March 2018.

    Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 8.5 percent on (YoY) basis in March 2019 as compared to an increase of 8.8 percent in the previous month and 5.8 percent in March 2018.

    On (MoM) basis, it increased by 0.5 percent in March 2019 as compared to an increase of 0.2 percent in previous month, and an increase of 0.7 percent in corresponding month of last year i.e. March 2018.

    Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 7.9 percent on (YoY) basis in March 2019 as compared to 7.7 percent in the previous month and by 4.1 percent in March 2018. On (MoM) basis, it increased by 0.4 percent in March 2019 as compared to an increase of 0.2 percent in the previous month and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.

    Sensitive Price Indicator (SPI) inflation on YoY basis increased by 8.8 percent in March 2019 as compared to an increase of 6.5 percent a month earlier and a decrease of 1.8 percent in March 2018.

    On MoM basis, it increased by 1.6 percent as compared to an increase of 1.5 percent in the previous month and a decrease of 0.6 percent in corresponding month of last year i.e. March 2018.

    Wholesale Price Index (WPI) inflation on YoY basis increased by 12.6 percent in March 2019 as compared to an increase of 11.0 percent a month earlier and an increase of 3.6 percent in March 2018.

    WPI inflation on MoM basis increased by 1.7 percent in March 2019 as compared to an increase of 0.9 percent a month earlier and an increase of 0.2 percent in corresponding month of last year i.e. March 2018.

  • Inflation for essential items rises by 11.9 percent

    Inflation for essential items rises by 11.9 percent

    ISLAMABAD: The prices of essential items have increased by 11.90 percent by week ended March 28, 2018 as compared with the same week last year.

    The Sensitive Price Indicator (SPI) – the barometer to gauge price movement of 53 essential items – showed that inflation had increased for all the income group from Rs8,000 / month to Rs35,000 per month and above.

    The income group falling between Rs18,001 to Rs35,000 faced inflationary pressure by 12.85 percent. Meanwhile the inflation for the income group Rs35,000 and above was recorded at 16.14 percent.

    However, the SPI based inflation fell 0.36 percent when compared with previous week.

    During the week ended March 28, 2019 the average prices of 20 items registered increase as compared with week ended March 21, 2019, which included: potatoes (6.5 percent); Onions (2.52 percent); Bananas (1.82 percent); Pulse Moong (washed) (1.47 percent) etc.

    However, average prices of nine items registered decline during the week under review, which included: tomatoes (32.57 percent); Eggs (6.78 percent); LPG cylinder (2.7 percent) etc.

    While average prices of 24 items were remained unchanged during the week.

  • Headline inflation rises by 8.2 percent in February

    Headline inflation rises by 8.2 percent in February

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) increased by 8.2 percent on year-on-year basis in February 2019 as compared to an increase of 7.2 percent in the previous month.

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  • Inflation increases more faster for lower income group

    Inflation increases more faster for lower income group

    In Pakistan, the prices of essential items have witnessed a more rapid increase for lower income groups earning up to Rs8,000 per month in comparison to other income segments.

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