Pakistan’s Inflation Rate Records Slight Dip at 27.4% in August 2023
Pakistan's Inflation Rate for August 2023
In a recent report by the Pakistan Bureau of Statistics (PBS), Pakistan’s Consumer Price Index (CPI) based inflation registered at 27.4 percent in August 2023, marking a marginal decline from the previous month’s 28.3 percent. This data also reveals a slight reduction from August 2022 when inflation stood at 27.3 percent.
On a month-to-month basis, inflation showed a decrease to 1.7 percent in August 2023 compared to 3.5 percent in July 2023 and 2.4 percent in August 2022.
Despite this dip, concerns loom over the future trajectory of inflation. The recent substantial increase in petroleum prices by the government and the rapid depreciation of the rupee against the US dollar in the past two weeks could potentially contribute to further inflationary pressure.
Protests have erupted across the nation in recent days, driven by soaring electricity bills. The interim government faces challenges in providing relief due to its commitments to the International Monetary Fund (IMF).
Also Read
The urban Consumer Price Index (CPI) inflation also showed a decrease, standing at 25.0 percent year-on-year in August 2023, compared to 26.3 percent in the previous month and 26.2 percent in August 2022. On a monthly basis, urban CPI inflation decreased to 1.6 percent in August 2023, down from 3.6 percent in July 2023.
Similarly, rural CPI inflation decreased slightly to 30.9 percent year-on-year in August 2023, compared to 31.3 percent in the previous month and 28.8 percent in August 2022. On a monthly basis, rural CPI inflation was at 1.9 percent in August 2023, compared to 3.3 percent in July 2023.
The Sensitive Price Index (SPI) inflation also saw a decline, registering at 27.9 percent in August 2023, compared to 29.3 percent in July 2023 and 34.0 percent in August 2022. On a monthly basis, SPI inflation increased by 4.1 percent in August 2023, compared to 2.8 percent in July 2023.
Wholesale Price Index (WPI) inflation on a year-on-year basis increased slightly to 24.3 percent in August 2023, compared to 23.1 percent in the previous month and 41.2 percent in August 2022. On a monthly basis, WPI inflation increased by 4.2 percent in August 2023, compared to 2.5 percent in July 2023 and 3.1 percent in August 2022.