ISLAMABAD-Inflation rate has surged to 36.4 percent in April, highest level since 1964-65, mainly due to the economic policies of the government to revive International Monetary Fund (IMF)’s programme that has still not revived despite massive currency depreciation and massive increase in energy prices.
Inflation measured through consumer price indicator (CPI) has increased to 36.4 percent in April this year—reportedly highest since 1964-65. Inflation rate in Pakistan is high in South Asia in April after leaving behind Sri Lanka where inflation was recorded at 35.3 percent. Inflation has ballooned due to the economic policies of the incumbent government to revive the IMF’s programme by increasing electricity, gas and oil prices, announcing mini budget and massive currency depreciation. However, the IMF’s programme has yet to revive.
The ministry of finance has already warned that inflation would further elevate in the months to come. “Headline inflation (CPI) is expected to remain at elevated level in the months to come. Its key drivers are food and energy price hikes. Further, currency depreciation and rising administered prices have contributed to jack up overall price level,” the ministry noted in its monthly report April 2023. It stated that although global commodity prices are showing a downward trend, however, are still on a higher side compared to the pre-pandemic level.
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According to the latest data of Pakistan Bureau of Statistics (PBS), the inflation on monthly basis has enhanced by 2.4 percent in April this year as against 3.7 percent in March. The CPI inflation Urban increased by 33.5 percent on a year-on-year basis in April 2023. Meanwhile the CPI inflation for Rural has enhanced by 40.7 percent. Meanwhile, it has enhanced by 28.23 percent in ten months (July to April) of the current fiscal year. The Sensitive Price Index (SPI), which gauges rates of kitchen items on a weekly basis, increased by 31.73 percent. On a monthly basis, Wholesale Price Index (WPI) inflation on YoY basis increased by 34 percent in April 2023.
The break-up of inflation of 36.42 percent showed that food and non-alcoholic beverages prices increased by 48.07 percent last month. Similarly, health and education charges went up by 18.77 percent and 8.5 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 16.94 percent in the last month. Meanwhile, the prices of alcoholic beverages and tobacco went up by around 153.53 percent. Prices of clothing and footwear increased by 21.62 percent and furnishing and household equipment maintenance charges 40.53 percent. Recreational charges and those related to culture went up by 68.6 percent in the period under review, while amounts charged by restaurants and hotels by 39.03 percent in April 2023 as compared to the same month last year. In urban areas, the food items which saw their prices increased during April 2023 included potatoes (26.88 percent), wheat flour (25.8 percent), tomatoes (19.32 percent), sugar (18.18 percent), fresh fruits (10.19 percent), eggs (9.81 percent), fresh vegetables (9.3 percent), gur (5.54 percent), wheat (4.47 percent), rice (3.38 percent), sweetmeat (2.63 percent), beverages (2.46 percent), meat (2.15 percent), pulse mash (1.73 percent), milk fresh (1.67 percent), bakery and confectionary (1.55 percent). In non-food commodities, prices of following commodities enhanced including text books (19.3 percent), stationery (10.15 percent), hospitals services (4.86 percent), and household equipments (3.16 percent), motor vehicles (2.51 percent), motor vehicle accessories (2.47 percent), plastic products (1.69 percent), and construction input items (1.58 percent), construction wage rates (1.19 percent), woolen cloth (1.19 percent) and house rent (1.03 percent. In urban areas, prices of following items reduced: onions (39.34 percent), chicken (8.64 percent), vegetable ghee (3.03 percent), pulse gram (2.99 percent), cooking oil (2.3 percent), besan (2.21 percent), pulse moong (0.69 percent) and gram whole (0.48 percent) during the period under review. In rural areas, prices of following commodities increased including wheat flour (33.8 percent), potatoes (27.85 percent), sugar (19.91 percent), fresh fruits (13.69 percent), fresh vegetables (13.14 percent), tea (11.65 percent), eggs (6.3 percent), ice cream (4.12 percent), beverages (3.51 percent), meat (3.51 percent), rice (3.17 percent), pan prepared (2.83 percent), bakery and confectionary (2.66 percent), beans (2.26 percent), pulse mash (1.77 percent), nimco (1.72 percent), milk fresh (1.2 percent), wheat (1.2 percent), honey (1.02 percent), tomatoes (0.93 percent), and butter (0.52 percent). In non-food items, prices of following commodities enhanced including text books (34.62 percent), education (5.89 percent), mechanical services (4.53 percent), motor vehicles accessories (4.49 percent), tailoring (4.47 percent), stationery (3.43 percent), washing soaps, detergents and match box (3.27 percent) dopatta (2.76 percent) and motor fuels (2.62 percent).
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