Inflation clocks in at 9.3pc in July amid rising food, fuel prices

Consumer Price Index based inflation during the month of July clocked in at 9.3 percent mainly on the back of a sharp increase in food and fuel prices, data released by the Pakistan Bureau of Statistics showed on Monday. 

“CPI inflation general, increased by 9.3pc on a year-on-year basis in July 2020 as compared to an increase of 8.6pc in the previous month and 8.4pc in July 2019. On a month-on-month basis, it increased by 2.5pc in July 2020 as compared to an increase of 0.8pc in the previous month and an increase of 1.8pc in July 2019,” the PBS press release said.

Meanwhile, CPI inflation (urban) increased by 7.8pc on a year-on-year basis in July 2020 as compared to an increase of 7.6pc in the previous month and 8.7pc in July 2019. On a month-on-month basis, it increased by 2.2pc in July 2020 as compared to an increase of 0.7pc in the previous month and an increase of 2.0pc in July 2019. 3. 

Whereas the CPI inflation (rural) increased by 11.5pc on a year-on-year basis in July 2020 as compared to an increase of 10.0pc in the previous month and 7.9pc in July 2019. On a month-on-month basis, it increased by 2.9pc in July 2020 as compared to an increase of 1.0pc in the previous month and an increase of 1.6pc in July 2019.

The sudden increase in petroleum prices last month pushed up the prices of transport and travel expenses of Pakistanis. The data further showed that the rising prices of perishable items including that of sugar, wheat, tomatoes and onions exacerbated the impact of inflation during the month. 

Food items that witnessed sharp increase during the month included: tomatoes, up 179.19pc, vegetables 23.84pc, onions 16.61pc, eggs 10.82pc, spices 7.57pc, wheat 7.42pc, potatoes 4.58pc, meat 3.97pc, sugar 3.82pc, beans 3.07pc, cigarettes 2.88pc, chicken 2.6pc, milk products 1.74pc) and milk 1.37pc.

Meanwhile, in the non-food category the prices of Motor fuel increased by 27.01pc, liquid hydrocarbons 7.27pc, House rent 1.58pc and medicines 1.04pc