Pakistan’s inflation climbs to 12.6 per cent in June

WEB DESK: Pakistan’s headline inflation rate increased to 12.6 per cent year-on-year in June 2024, according to the Pakistan Bureau of Statistics (PBS). This marks a rise from May’s inflation rate of 11.8 per cent. On a month-on-month basis, the inflation rate edged up by 0.5 per cent.

Topline Securities, a brokerage house, stated, “This came in line with our expectation.” The latest Consumer Price Index (CPI) figures bring the average inflation for the fiscal year 2024 to 23.4 per cent, compared to 29.2 per cent in the previous fiscal year.

The inflation figures matched the government’s projections. The Ministry of Finance, in its ‘Monthly Economic Update and Outlook’ report released on Friday, had anticipated a slight increase in inflation for June 2024 compared to the previous month, while noting that it remains significantly lower than the same period last year.

The ministry attributed the rise mainly to higher prices of perishable goods driven by Eidul Azha.

The Ministry of Finance also emphasized the government’s efforts to stabilize prices and mitigate market volatility through supply and demand management, presenting a more optimistic outlook for inflation.

Several brokerage houses also projected similar inflation figures. JS Global expected the CPI to clock in at 12.5 per cent year-on-year, bringing the FY24 average to 23.8 per cent.

This continues the downward trend from 11.8 per cent in May 2024, 17.3 per cent in April 2024, and a significant decline from 29.4 per cent in June 2023. AKD Securities Limited projected a 12.55 per cent year-on-year increase in inflation for June, compared to 11.76 per cent in May.

The PBS reported that urban CPI inflation reached 14.9 per cent year-on-year in June 2024, up from 14.3 per cent in May and 27.3 per cent in June 2023. On a month-on-month basis, urban inflation increased by 0.6 per cent in June 2024, following a 2.8 per cent decrease in May and a 0.1 per cent increase in June 2023.

In rural areas, CPI inflation rose to 9.3 per cent year-on-year in June 2024, compared to 8.2 per cent in May and 32.4 per cent in June 2023. Month-on-month, rural inflation increased by 0.3 per cent in June 2024, following a 3.9 per cent decrease in May and a 0.8 per cent decrease in June 2023.

Overall, the rise in inflation reflects a combination of seasonal factors and ongoing economic challenges, with both urban and rural areas experiencing notable price increases. The government remains focused on measures to manage inflation and ensure price stability across the country.

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