September 22, 2020

Inflation Hits Double Figures For First Time Since 2013

The inflation rates in Pakistan have been on the rise since last year and for the first time since November 2013, the inflation rate, if measured by the Consumer Price Index (CPI), has been noted in double figures, standing at 10.34pc. In comparison, the inflation rates in November 2013 stood at 10.9pc. Experts argue that the main reasons for this rise in inflation are increasing fuel and power prices. The inflation rate in June 2019, stood at 8.9pc and increased to 10.34pc in the month of July 2019.

Furthermore, the average inflation, if measured by the Sensitive Price Index increased to 12.16pc in July, which stood at just 3.58pc last year, whereas the Wholesale Price Index increased to 13.46pc, which stood at 10.50pc in the fiscal year 2018-19.

The bureau of statistics takes into account the prices of around 480 commodities to measure inflation with respect to CPI. The prices are taken on a monthly basis from all across the urban centers of the country. According to the stats, the inflation rates of food items were increasing by 9.2pc on annual basis and 1.5pc on monthly basis. Moreover, the inflation rates of non-food items were increasing by 11.1pc annually and by 2.8pc on monthly basis.

The rise in inflation rates is a result of several factors including the increase in fuel, the rise in prices of gas and electricity and the deprecation of dollar, which eventually increased the prices of several consumer and non-consumer items, including the prices of raw material for the industries as well.

The government has projected the inflation rates to increase to 11pc-13pc this fiscal year. Former Finance Minister Mr. Asad Umer said in an interview that inflation rates will rise in a coming couple of years and then will gradually start to decrease.

Add comment