Wednesday February 28, 2024

Inflation on the rise

April 03, 2019

The Pakistan Bureau of Statistics (PBS) has released figures for Consumer Price Index-based inflation rate in Pakistan. According to the statistics, Pakistan’s inflation hits five years highest in March 2019. The information was released by federal government’s official bureau to record and release economic data. It further furnished that the inflation rate increased by 9.4 per cent in the month of March this year as compared to 8.2 per cent in February 2019 and 3.2 per cent in March, 2018. This reports to be the highest inflation rate in Pakistan since November 2013.

It can be observed that the devaluation of the local currency may be the main reason behind this inflation rate in the country.

While comparing the figures annually, the Consumer Price Index-based inflation in Pakistan increased by 9.4 per cent in March 2019 against 3.2 per cent in March 2018 whereas the inflation rate increased by 1.4 per cent compared to previous month this year.

Core inflation in Pakistan measured by the non-food non-energy Consumer Price Index increased by 8.5 per cent on year to year (YoY) basis in March 2019 when compared with an increase of 8.8 per cent in February this year and 5.8 per cent in March, 2018

This rise in inflation continues to agitate purchase power parity of citizens who are paying up to forty per cent more to procure common commodities. For instance, the price of onions increased by 39 per cent, fresh vegetables by 24 per cent and tomatoes by 19 per cent as compared to previous month of 2019. Moreover, while comparing with March 2018, the figures remain likewise.

In addition, there exists a huge difference in non-food items i.e. gas price increased by 85 per cent, transport services by 15 per cent, motor fuel by 13 per cent, motor vehicles by 11.08 per cent and education by 6 per cent compared to March 2018.

Saad Bin Ayub