CPI slows to 23.1% YoY in February

March 01, 2024 (MLN): The consumer price index (CPI) in February 2024 slowed to a 20-month low of 23.1% YoY, compared to 28.34% YoY in the last month and 31.5% YoY in February 2023, the latest data issued by the Pakistan Bureau of Statistics (PBS) on Friday showed.

On a sequential basis, CPI inched up 0.03 in February 2024 as compared to an increase of 1.8% in the previous month and an increase of 4.3% in February 2023.

The inflation figures came in line with the market's expectations.

Accordingly, this takes the average yearly inflation of 8MFY24 to 28% YoY compared to 26.17% YoY in 8MFY23.

In February 2024, the Urban Consumer Price Index (CPI) inflation increased to 24.9% on a YoY basis as compared to an increase of 30.2% in the previous month and 28.8% in January 2023.

Similarly, it increased to 0.2% in February 2024 as compared to an increase of 1.8% in the previous month and an increase of 4.5% in February 2023.

Meanwhile, the Rural CPI inflation rose 20.5% YoY in February 2024 as compared to an increase of 25.7% in the previous month and 35.6% in February 2023.

On a month-on-month basis, it decreased to 0.3% in February 2024 as compared to an increase of 1.9% in the previous month and an increase of 4% in February 2023.

The Sensitive Price Index (SPI) inflation on a YoY basis, increased to 30.4% in February 2024 as compared to an increase of 36.2% a month earlier and 33.6% in January 2023.

On an MoM basis, it decreased by 0.8% in February 2024 as compared to an increase of 2.0% a month earlier and an increase of 3.7% in February 2023.

Furthermore, the Wholesale Price Index (WPI) inflation on a YoY basis increased to 18.7% in February 2024 as compared to an increase of 27% a month earlier and an increase of 36.4% in February 2023.

On a sequential basis, it increased by 1.1% in February 2024 as compared to an increase of 1.5% in the previous month and an increase of 8.2% in the corresponding month of last year i.e. February 2023.

With the CPI-based inflation rate at 23.1% and the policy rate at 22%, the real interest now stands at -1.1%.

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