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December 2, 2020

CPI inflation reduces to 8.3% in Nov 2020

Top Story

December 2, 2020

ISLAMABAD: Pakistan’s headline national inflation was reduced to 8.35 per cent in November 2020, against October reading of 8.9pc, the Pakistan Bureau of Statistics (PBS) reported on Tuesday.

In November 2019, the CPI was recorded at 12.7pc.

The significant aspect of the CPI bulletin was that urban inflation was recorded at 7pc, while rural inflation stood at 10.5pc during Nov 2020. The five-month (July-Nov) inflation was recorded at 8.76pc against 10.8pc in the corresponding period of the last fiscal. During last financial year (July-June 2019/20), the average inflation was recorded at 10.74pc, with a peak reading in January of 14.56pc year-on-year (YoY).

The latest CPI bulletin says that on a month-on-month (MoM) basis, inflation increased by 0.8pc in Nov 2020 as compared to an increase of 1.7pc in the previous month and an increase of 1.3pc in Nov 2019.

The CPI is a main gauge of price changes at the retail level of all goods and services, consumed by private households and roughly reflect changes in the cost of living of entire Pakistan.

According to the CPI basket, on average each Pakistani spends 34.58pc of his income on food and beverages, 23.63pc on house rent, water, gas, electricity and fuel, 8.6pc on clothing and footwear; 6.92pc on hoteling, 5.91pc on transportation, 4.1pc on furnishing and household equipment maintenance, 3.79pc on education, 2.7pc on health, 2.21pc on communication, but the least it spends 1.59pc of its income on recreation and culture.

Food inflation in Nov 2020 stood at 15.13pc against 16.58pc in the previous month. It was followed by clothing and footwear prices with an increase of 9.45pc, hoteling 9.28pc, furnishing and household equipment maintenance charges up by 7.67pc, health charges 7.62pc, alcoholic beverages, and tobacco 5.89pc, recreation and culture 4.16pc, charges of utilities (housing, water, electricity, gas and fuel) increased by 2.61pc, education 1.27pc and communication charges up by 0.61pc over the corresponding month of last year. However, transportation charges declined by 4.12pc over the corresponding month of last year.

The wholesale price index (WPI) on the other hand increased by 5pc in Nov 2020 as compared to an increase of 5.1pc a month earlier and an increase of 11.2pc in Nov 2019. The WPI inflation on MoM basis decreased by 0.9pc in Nov 2020 as compared to an increase of 2.9pc a month earlier and a decrease of 0.8pc in corresponding month (Nov 2019) of last year.

The SPI inflation on YoY increased by 9.9pc in Nov 2020 as compared to an increase of 12.3pc a month earlier and an increase of 20.2pc in Nov 2019. On MoM basis, it increased by 1.1pc in Nov 2020 as compared to an increase of 3.0pc a month earlier and an increase of 3.7pc in Nov 2019.

Over the previous month, chicken price increased by 21.36pc, tomatoes 15.68pc, potatoes 8.79pc, onions 5.81pc, vegetables 5.63pc, dry fruits 4.38pc, eggs 2.83pc, butter 2.61pc, condiments and spices 2.6pc and fish1.89pc.

While wheat flour price reduced by 4.83pc, wheat 4.1pc, pulse moong 3.54pc and pulse gram price down by 1.94pc over the previous month.

Among non-food items, LPG price increased by 10.31pc, readymade garments 8.85pc, cotton cloth 3.75pc, woollen cloth 2.33pc, furniture and furnishing 1.65pc and marriage hall charges 1.14pc. However, transport services charges reduced by 6.41pc, electricity charges 3.2pc and motor fuel 1.76pc over the previous month.