ISLAMABAD: Inflation remained in double-digits in February 2022 despite a slight decline as Consumer Price Index (CPI)-based reading ended at 12.2% on a year-on-year basis compared to an increase of 13.0% in the previous month (Jan-2022) and 8.7% in February 2021.
According to the latest data of Pakistan Bureau of Statistics, the eight months’ average inflation amounts to 10.52% YoY as against 8.25% in 8MFY21.
For the ruling party (Pakistan Tehrik-e-Insaf), inflation has been a thorny issue as the economy continues to face a widening current account deficit amid the surge in global commodity prices, especially oil.
Inflation has influenced Prime Minister Imran Khan to reduce prices of petroleum products in a wide-ranging address to the nation on Monday, surprising many as it comes after oil crossed $100 a barrel last week. The move also comes in tandem with the opposition saying it is set to propose a no-confidence motion in parliament to oust him.
Khan’s speech, which included other measures such as reducing electricity tariff, is widely being seen as being aimed at pacifying the public that saw inflation hit a two-year high in January.
Meanwhile, in the international market, oil futures rose on Tuesday morning, following a volatile start to the week, as the market weighed a coordinated international release of crude inventories against Russian supply disruptions in the wake of Moscow’s invasion of Ukraine.
Inflation reading in February
CPI inflation in urban areas increased 11.5% on a year-on-year basis in February 2022 as compared to an increase of 13.0% in the previous month and 8.6% in February 2021. On a month-on-month basis, it increased by 0.9% in February 2022 as compared to an increase of 0.1% in the previous month and an increase of 2.3% in February 2021.
CPI inflation in rural areas increased by 13.3% on year-on-year basis in February 2022 as compared to an increase of 12.9% in the previous month and 8.8% in February 2021. On a month-on-month basis, it increased by 1.5% in February 2022 as compared to increase of 0.9% in the previous month and increase of 1.1% in February 2021.
The Sensitive Price Index (SPI) inflation on YoY increased by 18.7% in February 2022 as compared to an increase of 20.9% a month earlier and an increase of 11.9% in February 2021. On a monthly basis, it increased by 1.3% in February 2022 as compared to decrease of -0.8% a month earlier and increase of 3.1% in February 2021.
