Connect with us

Business

Alarms raised as food prices push CPI inflation to record 38% in May

Published

2 years ago

on

  • Inflation clocks in 1.6% on month-on-month basis.
  • AHL says reading takes 11MFY23 average inflation to 29.2%.
  • Pakistan’s inflation outstrips Sri Lanka’s annual rate of 25.2% in May.

The consumer price index (CPI)-based inflation rate in Pakistan surged to a record 38% on a year-on-year (YoY) basis in May 2023, the highest since July 1965 — barring a few years in between due to the non-availability of monthly records).

Pakistan Bureau of Statistics (PBS) data showed that CPI-based inflation hit 36.4% in April 2023, while it increased 1.6% in the month of May month-on-month (MoM).

“This reading takes 11MFY23 average inflation to 29.2% compared to 11.3% in 11MFY22,” brokerage Arif Habib Limited noted in a report.

The food inflation in urban areas jumped by a whopping 48.1% in May 2023 compared to May 2022, while the rural areas saw a 52.4% increase in consumer prices year-on-year.

Arif Habib Limited Economist Sana Tawfiq, while noting that inflation reached record levels, stated that on a month-on-month (MoM) basis “inflation clocked-in higher, up 1.6%”. 

The analyst told Geo.tv that the MoM jump was primarily due to high food prices, household items and clothing. 

She added that core inflation continues to rise and crossed 23% YoY during the outgoing month.  

“We expect headline numbers to recede from June onwards with base-effect kicking in. However, domestic food and energy prices as well as further currency devaluation remain key risks to the overall inflation,” Tawfiq warned. 

The latest 38% rise tops that of Sri Lanka, which posted annual inflation of 25.2% in May.

Inflation has been on an upward trend since early this year after the government took painful measures as part of fiscal adjustments demanded by the International Monetary Fund (IMF) to unlock stalled funding, which still has not been disbursed.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

PSX 100-index reaches an unprecedented peak, exceeding 111,000 points.

Published

19 hours ago

on

By

The Pakistan Stock Exchange (PSX) reached the significant milestone of 111,000 points shortly after today’s market opening.

The KSE-100 Index ascended by more than 1,000 points in the initial five minutes of trade, achieving a notable increase of 1,044 points to attain 111,014 points.

The increase indicates heightened investor confidence and a robust market sentiment.

Continue Reading

Business

SIFC Initiates Carbon Market Initiative: Pakistan Pursues Green Investment at COP29

Published

2 days ago

on

By

Pakistan has introduced its inaugural Carbon Market Policy at the 29th Conference of the Parties in Baku to attain climate objectives and encourage green investments.

The policy seeks to enhance investment in the energy, agriculture, and forestry sectors.

Through the initiatives of the Special Investment Facilitation Council, Pakistan has developed a transparent carbon market framework that adheres to international norms.

The policy conforms to international standards and establishes a definite strategic orientation.

Pakistan’s carbon market policy promotes environmental conservation, economic development, and sustainability.
It promotes the use of eco-friendly technologies by enterprises and the reduction of greenhouse gas emissions.

The policy represents a substantial advancement in the worldwide effort to combat climate change. It encourages international investors and organizations to participate in Pakistan’s carbon market.

SIFC aims to mitigate environmental concerns while promoting economic growth via the Global Carbon Market.

Continue Reading

Business

When the benchmark hits 109,881 points, the PSX-100 index sets a new record.

Published

2 days ago

on

By

During the first hour of trading today, the Pakistan Stock Exchange (PSX) made a stunning comeback, moving from negative to positive territory. After losing 1,400 points, the market recovered and gained 800 points.

Setting a new high, the benchmark KSE-100 Index jumped 827 points to a record-breaking 109,881 points. Restored investor confidence was also reflected in the market’s return to its crucial levels of 108,000 and 109,000 points.

Supportive government policies and recent strong economic data are credited by experts with this success, as they have improved market mood.

Continue Reading

Trending