According to data released on Tuesday by the Pakistan Bureau of Statistics (PBS), inflation as measured by the Consumer Price Index (CPI) soared to 26.56 percent year-over-year in October, more than three percentage points higher than last month’s 23.18 percent and noticeably higher than the 9.2 percent in the same month last year.
According to official data, October saw an increase in inflation of 4.71 percent over September.
High food and transportation costs are still a problem in Pakistan, and this contributed to a 49-year high of 27.26 percent for headline inflation in August.
Every sub-index except for communications saw double-digit growth in October, which drove inflation.
Index-based inflation growth year over year:
Foods that spoil quickly: 70%, 47%
53.43 percent transport
Tobacco and alcoholic beverages: 34.63 percent
Non-perishable food: 30.58 percent
Hotels and eateries: 30.38 percent
Maintenance of furniture and appliances in homes: 27.61 percent
Culture and recreation: 23.65 percent
Other products and services: 22.35 percent
Clothing and shoes: 18.28 percent
Health: 16.23%
11.92% for utilities and housing
10.88% are educated
Conversation: 1.58 percent
Urban and rural inflation rose 24.57 percent and 29.53 percent year over year, respectively, according to PBS data.
The data refute the finance ministry’s assertion that inflation was projected to decrease because local average prices for essential items had decreased in its Monthly Economic Update and Outlook for October.
“Timely decisions to import perishable goods by waiving the customs taxes have helped to reduce the risks of inflation to some extent. Additionally, administrative steps are being made to curb price speculation in an effort to reduce inflation. Moreover, the drop in global commodity prices is anticipated to counteract any inflation increases brought on by changes in domestic supply.
The YoY CPI inflation is predicted to continue its downward trend from September in the month of October. According to the ministry, CPI inflation is anticipated to hover between 21-22.5 percent.
Rice and sugarcane crops were among those most severely impacted by this year’s floods, which have completely destroyed the agricultural sector. A survey issued last week also predicted that almost one million sheep and cows perished.
On the import of tomatoes and onions for a four-month period in September, the government had waived sales tax and withholding tax.
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