Pakistan’s Inflation Drops to Lowest Level in 20 Months

The Consumer Price Index (CPI) based inflation increased to 23.1 percent on a year-on-year basis in February 2024 as compared to an increase of 28.3 percent in the previous month and 31.5 percent in February 2023, according to Pakistan Bureau of Statistics (PBS). According to Arif Habib Limited, this is the lowest CPI-based inflation since June 2022. On average CPI stood at 27.96 percent during the first eight months (July-February) of the current fiscal year compared to 26.19 percent during the same period of the last fiscal year. On a month-on-month basis, no change was observed in February 2024 as compared to an increase of 1.8 percent in the previous month and an increase of 4.3 percent in February 2023. CPI inflation Urban increased to 24.9 percent on a year-on-year basis in February 2024 as compared to an increase of 30.2 percent in the previous month and 28.8 percent in February 2023. On a month-on-month basis, it increased to 0.2 percent in February 2024 as compared to an increase of 1.8 percent in the previous month and an increase of 4.5 percent in February 2023. CPI inflation Rural increased to 20.5 percent on a year-on-year basis in February 2024 as compared to an increase of 25.7 percent in the previous month and 35.6 percent in February 2023. On a month-on-month basis, it decreased to 0.3 percent in February 2024 as compared to an increase of 1.9 percent in the previous month and an increase of 4.0 percent in February 2023. The Sensitive Price Index (SPI) inflation on YoY increased to 30.4 percent in February 2024 as compared to an increase of 36.2 percent a month earlier and 33.6 percent in February 2023. On an MoM basis, it decreased by 0.8 percent in February 2024 as compared to an increase of 2.0% a month earlier and an increase of 3.7 percent in February 2023. The Wholesale Price Index (WPI) inflation on a YoY basis increased to 18.7 percent in February 2024 as compared to an increase of 27.0 percent a month earlier and an increase of 36.4 percent in February 2023. On an MoM basis, it increased by 1.1 percent in February 2024 as compared to an increase of 1.5 percent in the previous month and an increase of 8.2 percent in the corresponding month of last year i.e. February 2023. Measured by non-food non-energy Urban increased to 15.5 percent on a YoY basis in February 2024 as compared to an increase of 17.8 percent in the previous month and 17.1 percent in February 2023. On an MoM basis, it increased by 0.3 percent in February 2024 as compared to an increase of 1.1 percent in the previous month, and an increase of 2.2 percent in the corresponding month of last year i.e. February, 2023. Measured by non-food non-energy Rural increased to 21.9 percent on a YoY basis in February 2024 as compared to an increase of 24.6 percent in the previous month and 21.5 percent in February 2023. On an MoM basis, it increased by 0.4 percent in February 2024 as compared to an increase of 1.2 percent in the previous month, and an increase of 2.6 percent in the corresponding month of last year i.e. February 2023. Measured by a 20 percent weighted trimmed mean Urban increased to 16.0 percent on a YoY basis in February 2024 as compared to 22.1 percent in the previous month and 25.1 percent in February 2023. On an MoM basis, it increased by 0.3 percent in February 2024 as compared to an increase of 1.0 percent in the previous month and an increase of 2.9 percent in the corresponding month of last year i.e. February 2023. Measured by a 20 percent weighted trimmed mean Rural increased to 21.3 percent on a YoY basis in February 2024 as compared to 25.8 percent in the previous month and 31.6 percent in February 2023. On an MoM basis, it increased to 0.4 percent in February 2024 as compared to an increase of 1.2 percent in the previous month and an increase of 3.9 percent in the corresponding month of last year i.e. February 2023.