February 01, 2023 (MLN): The consumer price index (CPI) for the month of January 2023 increased by 27.55% YoY, compared to an increase of 24.5% YoY in the previous month and 13% in January 2022. On monthly basis, it increased to 2.9% MoM, the latest data issued by the Pakistan Bureau of Statistics (PBS) on Monday showed.
The estimates have exceeded the market expectations which were between 25% YoY – 27% YoY with an average estimate of 26% YoY.
High tides of inflation have brought the 7MFY23 average CPI number to 25.41% YoY compared to 10.26% YoY in 7MFY22.
It is pertinent to note that January's inflation number surpassed the previous high of 27.25% in August 2022, the highest ever in the last 50 years.
The Urban Consumer Price Index for January 2023 is increased to 2.36% over December 2022 and increased to 24.38% over the corresponding month of the last year i.e. January 2022.
The YoY increase in inflation in urban centres is primarily attributed to the surging prices of Onions(468.54%), Chicken (83.27%), Wheat (78.39%), Rice(65.24%), Wheat Flour (61.25%), Gram Whole (50.47%), Pulse Moong (46%), Pulse Gram(44.53%), Besan (43.25%), Mustard Oil (42.28%), Pulse Mash(37.1%), Fresh Fruits(35.33%), Cooking Oil (31.46%), Milk Fresh (29.27%), Vegetable Ghee(28.49%), Tomatoes (22.44%), Fish(22.28%), Pulse Masoor(22.07%), Meat(20.01%), Fresh Vegetables(8.43%), and Potatoes(6.18%).
Meanwhile, the Rural Consumer Price Index for January 2023 increased to 3.62% over December 2022 and increased to 32.26% over the corresponding month of the last year i.e. January 2022.
This sharp rise in the CPI is expected to have a major impact on the country's economy, particularly for households as they face increased inflationary pressure. The government and central bank will likely need to take measures to address this rise and stabilize the economy.
The PBS data has sparked concern among economists and analysts, who are closely monitoring the situation to see what steps the government and central bank will take to address this trend. The data is also expected to have a significant impact on future monetary policy decisions.
Overall, the latest CPI data highlights the need for sustained efforts to address rising inflation in Pakistan and ensure stability for the economy and households.
Copyright Mettis Link News
Posted on: 2023-02-01T13:47:54+05:00