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.
|Clothing & Footwear||8.6%||213.1||176.7||20.6%||208.7||2.1%|
|Restaurants & Hotels||6.9%||252.5||188.0||34.3%||246.5||2.4%|
|House Hold Equipment||4.1%||252.7||181.4||39.3%||248.5||1.7%|
|Recreation & Culture||1.6%||254.8||160.5||58.8%||253.8||0.4%|
|Alcoholic Beverages, Tobacco||1.0%||361.2||192.7||87.5%||359.5||0.5%|
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