In July 2024, Pakistan’s Consumer Price Index (CPI) based inflation slowed to 11.1 percent year-on-year, a decrease from 11.8 percent in the previous month and significantly lower than the 28.3 percent recorded in July 2023, according to the Pakistan Bureau of Statistics (PBS). Arif Habib Limited (AHL) noted that this is the lowest inflation rate since October 2021. On a month-on-month basis, CPI inflation increased by 2.1 percent in July 2024, compared to a 0.5 percent increase in the previous month and a 3.5 percent increase in July 2023.
In urban areas, CPI inflation rose to 13.2 percent year-on-year in July 2024, down from 14.9 percent the previous month and 26.3 percent in July 2023. Month-on-month, it increased by 2.0 percent in July 2024, compared to a 0.6 percent increase in the previous month and a 3.6 percent increase in July 2023.
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In rural areas, CPI inflation increased to 8.1 percent year-on-year in July 2024, down from 9.3 percent the previous month and 31.3 percent in July 2023. On a month-on-month basis, it increased by 2.2 percent in July 2024, compared to a 0.3 percent increase in the previous month and a 3.3 percent increase in July 2023.
The Sensitive Price Index (SPI) inflation rose to 15.7 percent year-on-year in July 2024, compared to 16.6 percent a month earlier and 29.3 percent in July 2023. On a month-on-month basis, it increased by 2.0 percent in July 2024, compared to 1.3 percent the previous month and 2.8 percent in July 2023.
The Wholesale Price Index (WPI) inflation increased to 10.4 percent year-on-year in July 2024, slightly down from 10.6 percent the previous month and significantly lower than the 23.1 percent recorded in July 2023. Month-on-month, it increased by 2.3 percent in July 2024, compared to a 0.4 percent increase in the previous month and a 2.5 percent increase in July 2023.
Core inflation, measured by non-food and non-energy items, saw varied trends. In urban areas, it increased to 11.7 percent year-on-year in July 2024, down from 12.2 percent the previous month and 18.4 percent in July 2023. On a month-on-month basis, it increased by 0.7 percent in July 2024, compared to 0.6 percent the previous month and 1.2 percent in July 2023.
In rural areas, core inflation increased to 16.9 percent year-on-year in July 2024, slightly down from 17.0 percent the previous month and 24.6 percent in July 2023. Month-on-month, it rose by 1.1 percent in July 2024, compared to a 0.9 percent increase the previous month and 1.2 percent in July 2023.
