Connect with us

Hi, what are you looking for?

Economy

Inflation in Pakistan Sees a Dip in May 2024, but Yearly Figures Remain Concerning

ISLAMABAD: Pakistan’s Consumer Price Index (CPI) for the month of May 2024 witnessed a notable decrease, but the annual inflation figures continue to raise concerns. The Ministry of Planning, Development, and Special Initiatives, along with the Pakistan Bureau of Statistics, released a comprehensive report shedding light on the country’s economic landscape.

The month-on-month inflation rate for May 2024 over April 2024 stood at -3.24%. While this indicates a temporary relief from rising prices, the year-on-year inflation rate for May 2024 over May 2023 was a staggering 11.76%. Furthermore, the average inflation rate for the period of July 2023 to May 2024, compared to the same period in the previous year, was 24.52%. These figures underscore the persistent inflationary pressures facing the Pakistani economy.

Analyzing the CPI on the new base year of 2015-16, which encompasses both urban and rural sectors, the report revealed insights into the dynamics of inflation across various expenditure groups. The urban CPI experienced a decrease of 2.80%, while the rural CPI saw a more significant decline of 3.89% in May 2024 compared to April 2024. Notably, the food and non-alcoholic beverages group witnessed a substantial decrease of 7.83%, driven primarily by a decline in prices of perishable food items such as tomatoes and onions.

Delving deeper into the urban and rural consumption patterns, the report highlighted significant fluctuations in the prices of essential commodities. In urban areas, while items like potatoes and meat witnessed price hikes, others like tomatoes and wheat experienced sharp declines. Similar trends were observed in rural areas, with notable increases in prices of potatoes and meat, alongside decreases in tomatoes and wheat.

Moreover, the report outlined the year-on-year changes in prices, revealing stark contrasts between May 2024 and May 2023. Urban areas saw significant increases in prices of essential food items like onions and tomatoes, while rural regions experienced similar trends along with notable hikes in electricity charges and transport services.

While certain sectors such as clothing and footwear witnessed consistent increases in prices, others like communication saw marginal fluctuations. The report also highlighted notable increases in education-related expenses across both urban and rural sectors.

As Pakistan grapples with persistent inflationary pressures, policymakers face the challenge of implementing effective measures to stabilize prices and ensure economic stability. Addressing the root causes of inflation, including supply chain disruptions and rising global commodity prices, will be crucial in charting a path towards sustainable economic growth and mitigating the impact on consumers.

Pakistan’s Consumer Price Index (CPI) for the month of May 2024 witnessed a notable decrease, but the annual inflation figures continue to raise concerns. The Ministry of Planning, Development, and Special Initiatives, along with the Pakistan Bureau of Statistics, released a comprehensive report shedding light on the country’s economic landscape.

The month-on-month inflation rate for May 2024 over April 2024 stood at -3.24%. While this indicates a temporary relief from rising prices, the year-on-year inflation rate for May 2024 over May 2023 was a staggering 11.76%. Furthermore, the average inflation rate for the period of July 2023 to May 2024, compared to the same period in the previous year, was 24.52%. These figures underscore the persistent inflationary pressures facing the Pakistani economy.

Analyzing the CPI on the new base year of 2015-16, which encompasses both urban and rural sectors, the report revealed insights into the dynamics of inflation across various expenditure groups. The urban CPI experienced a decrease of 2.80%, while the rural CPI saw a more significant decline of 3.89% in May 2024 compared to April 2024. Notably, the food and non-alcoholic beverages group witnessed a substantial decrease of 7.83%, driven primarily by a decline in prices of perishable food items such as tomatoes and onions.

Delving deeper into the urban and rural consumption patterns, the report highlighted significant fluctuations in the prices of essential commodities. In urban areas, while items like potatoes and meat witnessed price hikes, others like tomatoes and wheat experienced sharp declines. Similar trends were observed in rural areas, with notable increases in prices of potatoes and meat, alongside decreases in tomatoes and wheat.

Moreover, the report outlined the year-on-year changes in prices, revealing stark contrasts between May 2024 and May 2023. Urban areas saw significant increases in prices of essential food items like onions and tomatoes, while rural regions experienced similar trends along with notable hikes in electricity charges and transport services.

While certain sectors such as clothing and footwear witnessed consistent increases in prices, others like communication saw marginal fluctuations. The report also highlighted notable increases in education-related expenses across both urban and rural sectors.

As Pakistan grapples with persistent inflationary pressures, policymakers face the challenge of implementing effective measures to stabilize prices and ensure economic stability. Addressing the root causes of inflation, including supply chain disruptions and rising global commodity prices, will be crucial in charting a path towards sustainable economic growth and mitigating the impact on consumers.

Written By

I am an accomplished graduate of Strategic Studies, driven by a fervent dedication to comprehending global affairs and devising impactful strategies. Equipped with a comprehensive skill set encompassing research, critical thinking, and persuasive communication, I possess a distinctive viewpoint and an unwavering commitment to fostering inclusive decision-making processes. As a versatile individual, I excel in collaborating with diverse groups in various settings, leveraging my strong interpersonal abilities to adapt seamlessly to new environments and surmount any challenges that arise. With a passion for contributing to strategic initiatives, I am eager to leverage my expertise and drive to effect positive change within the field.

Sports

Indian actor and model Sonam Bajwa, celebrated for her open appreciation of Pakistani talent, once again grabbed headlines for her admiration of cross-border celebrities....

National

Pakistani trailblazers Ammara Sharif and Dr. Sana Jamil are poised to make history as the first female duo from Pakistan to conquer the daunting...

Budget

ISLAMABAD: Pakistan has decided to restrict foreign travel for non-filers, with exceptions for those traveling for Hajj, Umrah, or educational purposes, as the country...

Art & Culture

KARACHI: Elisabeth Foley says, “The most beautiful discovery true friends make is that they can grow separately without growing apart.” Keeping its traditions alive,...