January 01, 2024 (MLN): The consumer price index (CPI) for the month of December 2023 surged to 29.7% YoY, compared to 29.2% YoY in the last month and 24.5% YoY in December 2022, the latest data issued by the Pakistan Bureau of Statistics (PBS) on Monday showed.

On a sequential basis, the CPI has increased by 0.8% compared to an increase of 2.7% in the previous month, and the 12-month average of 2.17%.

The inflation figures came in hotter than market expectations of around 28.95% YoY, while in line with MG Research's expectations.

This jump is fueled on account of an increase in Housing, Water, Electricity, Gas & Fuels group.

Accordingly, this takes the average yearly inflation of 1HFY24 to 28.8% YoY compared to 25.05% YoY in 1HFY23.

In December 2023, the Urban Consumer Price Index (CPI) inflation increased to 30.9% YoY as compared to an increase of 30.4% in the previous month and 21.6% in December 2022.

Similarly, it increased by 0.7% MoM as compared to an increase of 4.3% in the previous month and an increase of 0.3% in December 2022.

Meanwhile, the Rural CPI inflation rose by 27.9% on year-on-year basis in December 2023 as compared to an increase of 27.5% in the previous month and 28.8% in December 2022.

Month-on-month, it increased by 1% in December 2023 as compared to an increase of 0.4% in the previous month and an increase of 0.7% in December 2022.

The Sensitive Price Index (SPI) inflation, on YoY increased to 35.3% in December 2023 as compared to an increase of 30.6% a month earlier and 27.8% in December 2022.

On MoM basis, it increased by 3.8% in December 2023 as compared to an increase of 3.3% a month earlier and an increase of 0.2% in December 2022.

Furthermore, the Wholesale Price Index (WPI) inflation on a YoY basis climbed to 27.3% in December 2023 as compared to an increase of 26.4% a month earlier and an increase of 27.1% in December 2022.

On a sequential basis, no change in December 2023 was observed as compared to an increase of 1.4% a month earlier and a decrease of 0.7% in corresponding month of last year i.e. December 2022.

With the CPI-based inflation rate at 29.7% and the policy rate at 22%, the real interest now stands at -7.7%.

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Posted on: 2024-01-01T16:15:50+05:00