Pakistan’s Monthly in December 2020 was recorded at 7.97 percent compared to 12.60 percent in December 2019 and 8.35 percent in November 2020.

This takes the July-December 2020 average inflation to 8.63 percent compared to 11.10 percent from the same period last year.

On month-on-month basis, CPI Inflation decreased by 0.68 percent in December compared to an increase of 0.82 percent in November.

Previosuly, Analysts had expected Inflation to be in the range of 8 percent to 8.1 percent.

A significant decreased in perishable food items was witnessed during the month as t declined by 15.1 percent in December as compared to November-2020, while non-perishable food items also declined by 0.62 percent on monthly basis.

Core Inflation for Urban areas remained stable at 5.6 percent while Core Inflation in Rural inflation increased to 7.7 prcent as compared to 7.4 percent in last month.

For the period July to December 2020, Rural Inflation has averaged at 10.6 percent while Urban Inflation has averaged at 7.3 percent.

Inflation outlook

Inflation is expected to average between 8 percent to 9 percent in FY21 due to high food inflation. However, upward risk exists in the form of any upward adjustments in energy price increase and food price shocks

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