Inflation in October shoots to 9.2 percent

Inflation in October

The Pakistan Bureau of Statistics (PBS) data exhibits the continuous rising change in customer prices in October as inflation rushed to 9.2 percent from 9 percent in September, predisposed by wilder rupee devaluation and rising energy prices the preceding month. 

The inflation calculated by the Consumer Price Index (CPI) enlarged to its peak level in four months, the era when worldwide oil values kept on increasing steadily undermining earlier gains. Simultaneously, prices of fruits, fresh vegetables, and meat have also shown a persistent increase in main urban centers. 

Read more: Prices of tomatoes, ghee, 22 other items hiked as inflation rate increased by 12.66%

Meanwhile, the July-October average inflation period rose to 8.74 percent on a yearly basis. Though, inflation had started deteriorating after rolling to 11.1 percent in April, mostly compelled by a decrease in prices of agricultural produces. The movement is retreating now on the back of a rise in the prices of petroleum products. 

In 2020-21, PBS CPI inflation was documented at 8.90 percent in contrast to 10.74 percent the previous year. 

While noting on the rising inflation in the country, Adviser to the Prime Minister on Finance and Revenue Shaukat Tarin conveyed it was a universal issue, continuing that “prices of commodities in the world are not in my control”. Besides pulses, Pakistan is now importing wheat and sugar, he said, adding that greater prices in the global market would disturb domestic prices as well. 

The supply chain was disrupted as a result of the coronavirus pandemic; though the economy is now recuperating, he replied to questions concerning inflation at the sidelines of the launching of Pakistan Single Window. 

However, food inflation is still at a greater level as in urban areas it increased by 9.4 percent in October on a yearly basis and 1.5 percent on a monthly basis, while the corresponding development in prices in rural areas stood at 7.2 percent and 2.6 percent. 

The State Bank regulates the crucial policy rate presently at 7.25 percent based on the core inflation rate. 

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