Inflation eases to 8.9pc in October

Inflation for the month of October eased to 8.9 percent compared to 9pc in September mainly on the back of a gradual decline in food prices, data released by the Pakistan Bureau of Statistics showed.

CPI inflation General, increased by 8.9pc year-on-year basis in October 2020 as compared to an increase of 9pc in the previous month and 11pc in October 2019, said the PBS in its press release.

On a month-on-month basis, it increased by 1.7pc in October as compared to an increase of 1.5pc in the previous month and an increase of 1.8pc in October 2019.

On the other hand, the CPI Inflation Urban increased by 7.3pc on a year-on-year basis in October as compared to an increase of 7.7pc in the previous month and 10.9pc in October 2019. Moreover, on a month-on-month basis, it increased by 1.3pc in October as compared to an increase of 1.3pc in the previous month and an increase of 1.6pc in October 2019.

In the rural areas, CPI inflation increased by 11.3pc on a year-on-year basis in October as compared to an increase of 11.1pc in the previous month and 11.3pc in October 2019. On a month-on-month basis, it increased by 2.4pc in October 2020 as compared to an increase of 2.0pc in the previous month and an increase of 2.2pc in October 2019, said the PBS in its announcement.

The monthly figure was lower than market expectations as industry experts said the rate could clock in at 8.5pc.

Aqeel Kareem Dedhi while speaking to a news channel said that this is a very important development as it will ease pressures on the State Bank of Pakistan to increase interest rates in the upcoming monetary policy announcement.