In September 2023, the year-on-year headline inflation rate surged to 31.4%, a significant increase from the 23.2% recorded during the same period the previous year. This uptick in inflation was a noticeable jump from the 27.4% year-on-year rate seen in the prior month. The primary drivers of this inflationary surge encompassed various categories, such as food (33.1% year-on-year), transportation (31.3% year-on-year), housing (29.7% year-on-year), restaurants (34.3% year-on-year), alcoholic beverages and tobacco (87.5% year-on-year), household equipment (39.3% year-on-year), miscellaneous items (36.4% year-on-year), recreation and culture (58.8% year-on-year), and clothing and footwear (20.6% year-on-year). Consequently, the three-month average headline inflation for the fiscal year 2023 reached 29.0%, up from the 25.11% recorded in the corresponding period the previous year.

On a month-on-month basis, inflation increased by 2.0%, largely driven by rising costs in petroleum and liquefied hydrocarbon products, food items, construction materials, and medical and dental services. Notable monthly increases were observed in transportation (+9.1%) due to domestic petroleum price hikes and higher liquefied hydrocarbon product prices, as well as food (+1.6%) attributed to elevated prices for items like fresh vegetables, onions, pulses, sugar, gur, and spices.

Core inflation also exhibited an increase, reaching an average of 22.1% year-on-year, up from the previous month’s average of 21.4%. Urban core inflation in September 2023 rose by 18.6% year-on-year, while rural core inflation increased by 27.3% year-on-year. On a monthly basis, urban and rural core inflation increased by 1.0% and 2.6%, respectively.

CPI 244.1185.731.4%239.32.0%
Clothing & Footwear8.6%213.1176.720.6%208.72.1%
Restaurants & Hotels6.9%252.5188.034.3%246.52.4%
House Hold Equipment4.1%252.7181.439.3%248.51.7%
Recreation & Culture1.6%254.8160.558.8%253.80.4%
Alcoholic Beverages, Tobacco1.0%361.2192.787.5%359.50.5%
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