The country missed its inflation target of 21 percent for the fiscal year 2023-24, ending with 23.41 percent inflation, down from 29.18 percent in the previous fiscal year.
Pakistan Unable to Achieve 21% Inflation Target for FY24
CPI inflation in urban areas increased to 14.9 percent YoY in June 2024, compared to 14.3 percent in the previous month and 27.3 percent in June 2023. On an MoM basis, it rose by 0.6 percent in June 2024, following a decrease of 2.8 percent in the previous month and an increase of 0.1 percent in June 2023.
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CPI inflation in rural areas rose to 9.3 percent YoY in June 2024, up from 8.2 percent in the previous month, but lower than the 32.4 percent recorded in June 2023. On an MoM basis, rural inflation increased by 0.3 percent in June 2024, compared to a decrease of 3.9 percent in the previous month and a decrease of 0.8 percent in June 2023.
The Sensitive Price Indicator (SPI) inflation rose to 16.6 percent YoY in June 2024, up from 15.3 percent in the previous month, but lower than the 34.9 percent recorded in June 2023. On an MoM basis, SPI inflation increased by 1.33 percent in June 2024, compared to a decrease of 4.0 percent in the previous month and an increase of 0.2 percent in June 2023.
Pakistan Struggles to Meet 21% Inflation Goal for FY24
Wholesale Price Index (WPI) inflation increased to 10.6 percent YoY in June 2024, up from 9.9 percent in the previous month, but down from 22.4 percent in June 2023. On an MoM basis, WPI inflation rose by 0.4 percent in June 2024, compared to a decrease of 2.5 percent in the previous month and a decrease of 0.3 percent in June 2023.
Core inflation, measured by non-food non-energy (NFNE) items, in urban areas increased to 12.2 percent YoY in June 2024, down slightly from 12.3 percent in the previous month and from 18.5 percent in June 2023. On an MoM basis, it rose by 0.6 percent in June 2024, compared to an increase of 0.4 percent in the previous month and an increase of 0.7 percent in June 2023.
Pakistan’s Inflation Surpasses 21% Target for FY24
In rural areas, NFNE core inflation remained stable at 17.0 percent YoY in June 2024, unchanged from the previous month but lower than the 25.2 percent recorded in June 2023. On an MoM basis, it increased by 0.9 percent in June 2024, up from 0.5 percent in the previous month and matching the increase in June 2023.
Core inflation, measured by a 20 percent weighted trimmed mean, in urban areas decreased to 10.3 percent YoY in June 2024, from 11.0 percent in the previous month and 22.9 percent in June 2023. On an MoM basis, it increased by 0.6 percent in June 2024, following a decrease of 0.5 percent in the previous month and an increase of 0.8 percent in June 2023.
Pakistan Unable to Achieve 21% Inflation Target for FY24
In rural areas, the 20 percent weighted trimmed mean core inflation increased to 11.0 percent YoY in June 2024, up from 10.6 percent in the previous month but lower than the 29.9 percent recorded in June 2023. On an MoM basis, it rose by 0.5 percent in June 2024, compared to a decrease of 0.9 percent in the previous month and an increase of 0.1 percent in June 2023.
