Islamabad: The Pakistan Bureau of Statistics (PBS) reported on Thursday that the Consumer Price Index (CPI) inflation for July 2024 has risen to 11.1% year-on-year (YoY). This marks a decrease from the 12.6% increase recorded in June 2024 and a significant drop from the 28.3% inflation rate in July 2023.
The CPI measures household inflation and reflects changes in the cost of living across various expenditure categories. On a month-on-month (MoM) basis, inflation increased by 2.1%. Urban areas experienced a higher inflation rate of 13.2%, while rural areas saw an 8.1% increase.
Core inflation, which excludes volatile food and energy prices, was reported at 11.7% in urban areas and 16.9% in rural areas. Food inflation, a major contributor to overall inflation, stood at 1.56% YoY and 4.67% MoM. The increase in food prices, particularly for items like tomatoes, milk powder, and pulse gram, has significantly impacted inflation.
Topline Securities indicated that the inflation data was consistent with their expectations, although Bloomberg had estimated a lower rate of 10.6%. Over the past five years, food inflation has accumulated by over 114%, highlighting its substantial role in the overall inflationary pressure. The rise in prices for essential food items and non-food goods continues to affect consumers nationwide.
