ISLAMABAD – Pakistan’s inflation continues to accelerate to hit a fresh record in January as containers carrying supplies are stuck at the port due to import restriction placed due to shortage of dollars in the country.
The Consumer Price Index (CPI) increased to 27.6% on year-on-year basis in previous month as compared to an increase of 24.5% in Dec 2022 and 13% in Jan 2022.
“On month-on-month basis, it increased to 2.9% in Jan 2023 as compared to an increase of 0.5% in the previous month and an increase of 0.4% in Jan 2022,” the Pakistan Bureau of Statics (PBS) in its monthly report.
Arif Habib Limited, a finance research firm, said this is the highest YoY inflation after May 1975. “This takes 7MFY23 average inflation to 25.40% compared to 10.26% in 7MFY22,” it said in a tweet.
CPI for the month of Jan’23 clocked-in at 27.55% YoY (+2.88% MoM). This is the highest YoY inflation after May 1975 (27.77%).This takes 7MFY23 average inflation to 25.40% compared to 10.26% in 7MFY22.@PBSofficialpak @StateBank_Pak #PBS #Inflation #Pakistan #Economy #AHL pic.twitter.com/P2eyxSBbl2
— Arif Habib Limited (@ArifHabibLtd) February 1, 2023
According to PBS, the CPI inflation in urban area increased to 24.4% on year-on-year basis in Jan 2023 as compared to an increase of 21.6% in the previous month and 13.0% in Jan 2022. On month-on-month basis, it increased to 2.4% in Jan 2023 as compared to an increase of 0.3% in the previous month and an increase of 0.1% in Jan 2022.
However, “CPI inflation Rural, increased to 32.3% on year-on-year basis in Jan 2023 as compared to an increase of 28.8% in the previous month and 12.9% in Jan 2022. On month-on-month basis, it increased to 3.6% in Jan 2023 as compared to an increase of 0.7% in the previous month and an increase of 0.9% in Jan 2022”.
The inflation accelerated as various shipments of various commodities are stuck at the port due to closure of letters of credit (LCs), affecting the demand and supply chain in the country.
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