Inflation at 27.4 percent in August-2023

September 5, 2023

In August 2023, the Consumer Price Index (CPI)-based inflation in Pakistan reached 27.4% on a year-on-year basis, a slight decrease from the 28.3% recorded in the previous month and 27.3% in August 2022, as reported by the Pakistan Bureau of Statistics (PBS).

Over the first two months of fiscal year 2024 (July-August), the average inflation stood at 27.84%, compared to 26.10% during the same period in fiscal year 2023.

On a month-on-month basis, inflation eased to 1.7% in August 2023, down from 3.5% in the previous month and 2.4% in August 2022.

Breaking down the figures, CPI inflation in urban areas was at 25% year-on-year in August 2023, down from 26.3% in the previous month and 26.2% in August 2022. On a month-on-month basis, urban CPI inflation was 1.6% in August 2023, a drop from 3.6% in the previous month and 2.6% in August 2022.

CPI inflation in rural areas reached 30.9% year-on-year in August 2023, down from 31.3% in the previous month and 28.8% in August 2022. On a month-on-month basis, rural CPI inflation was 1.9% in August 2023, compared to 3.3% in the previous month and 2.2% in August 2022.

The Sensitive Price Index (SPI) inflation stood at 27.9% year-on-year in August 2023, a decrease from 29.3% in the previous month and 34% in August 2022. On a month-on-month basis, SPI inflation rose by 4.1% in August 2023, compared to a 2.8% increase in the previous month and 5.2% in August 2022.

The Wholesale Price Index (WPI) inflation on a year-on-year basis reached 24.3% in August 2023, up from 23.1% in the previous month and 41.2% in August 2022. On a month-on-month basis, WPI inflation increased by 4.2% in August 2023, compared to a 2.5% increase in the previous month and 3.1% in August 2022.

Measured by non-food non-energy inflation in urban areas reached 18.4% year-on-year in August 2023, the same as in the previous month but higher than the 13.8% in August 2022. On a month-on-month basis, it increased by 1.8% in August 2023, up from 1.2% in the previous month and the same as August 2022.

Measured by non-food non-energy inflation in rural areas reached 25.9% year-on-year in August 2023, up from 24.6% in the previous month and 16.5% in August 2022. On a month-on-month basis, it increased by 2.8% in August 2023, up from 1.2% in the previous month and 1.8% in August 2022.

Measured by the 20% weighted trimmed mean, urban inflation was 23.0% year-on-year in August 2023, up from 21.7% in the previous month and 21.4% in August 2022. On a month-on-month basis, it increased by 1.5% in August 2023, down from 1.9% in the previous month but similar to August 2022.

Measured by the 20% weighted trimmed mean, rural inflation was 30.5% year-on-year in August 2023, up from 28.7% in the previous month and 23.8% in August 2022. On a month-on-month basis, it increased by 1.4% in August 2023, down from 2.4% in the previous month but higher than August 2022.

The National Consumer Price Index for August 2023 increased by 1.72% compared to July 2023 and by 27.38% over the same month in the previous year, August 2022. The Urban Consumer Price Index for August 2023 increased by 1.60% over July 2023 and by 24.98% over August 2022.

On a month-on-month basis,

The increase in inflation was primarily due to the escalating prices of petroleum and liquefied hydrocarbon products, food commodities, construction materials, pharmaceuticals, and increased electricity tariffs. Significant month-on-month increases were observed in specific categories:

Food prices rose by 0.6%, driven by higher costs for items such as rice, fresh vegetables, tomatoes, eggs, sugar, gur (jaggery), and spices.

Transportation costs surged by 7.9%, mainly due to domestic petroleum product price hikes and elevated prices for liquefied hydrocarbon products during the month.