Inflation accelerated sharply for both food and other purchases in the first two months of FY, to 5.
Tweet After several months of worrisome macroeconomic data and amid a free-falling rupee, finally, there is some good news for the economy on the inflation front. The July retail inflation has come at a nine-month low of 4.
Going by the CSO data, inflation in vegetables declined by - 2. The rate of price rise in fruits slowed down 6. The inflation in protein-rich items like meat and fish, and also milk was slower in July compared to the previous month.
However, inflation in the 'fuel and light' segment increased to 7. This is encouraging given that the sharp fall Inflation in pakistan July inflation numbers come with food, vegetable prices and pulses exhibiting visibly a sharp drop.
Reuters A section of economists expects that if the August print too come at around 4 percent or even below, there is an expectation that the monetary policy committee MPC will not be in a tearing hurry to go for another rate hike in the October policy review.
The MPC might then wait till early next year to assess other risk factors, mainly the full impact of minimum support prices MSPvolatile exchange rate scenario and other external factors.
But, not everyone subscribes to this view. One worrying factor is that core inflation, or non-food, non-oil manufacturing inflation continues to be high. In July, the figure stood at 5. If this continues, coupled with upside risks from exchange rate and external factors, these are enough reasons for the MPC to effect another rate cut in October itself.
In this context, August numbers will be watched closely. The answer is yes, though the timing will be critical.
The base effect will help to keep the number low, but a lot depends on how the non-food items behave. Lower GST rates should help to temper some prices which should come down.
Will it be universal? The MPC is unlikely to derive great comfort from the July inflation numbers alone and lower its guard on the inflation fight.
If one looks at the latest monetary policy review, the dominant language was that of caution. The MPC listed the upside risks of inflation; spiking crude oil price, global markets volatility, significant pick-up in household inflation expectations and the full impact of monsoon and so on.
Clearly, the rate-setting panel wants to keep inflation on a short leash and more rate hikes are sure to come. With data support from Kishor Kadam Updated Date: Aug 14, Afghanistan became a member of the World Bank in Shortly after the Soviet invasion in , World Bank operations were suspended, although the Bank continued to provide assistance to Afghans through its office in Pakistan.
ISLAMABAD: Inflation edged up per cent year-on-year in December on the back of a persistent increase in petroleum products and regulatory duties on imported consumer goods. This was the. After several months of worrisome macroeconomic data and amid a free-falling rupee, finally, there is some good news for the economy on the inflation front.
The July retail inflation has come at a nine-month low of percent with the decline seen across most segments.
Going by the CSO data. This paper examines the factors that explain and help forecast inflation in Pakistan. A simple inflation model is specified that includes standard monetary variables (money supply, credit to the private sector), an activity variable, the interest and the exchange rates, as well as the wheat support price as a .
Oct 01, · The statistics also showed that the core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) also grew by percent on (YoY) basis during August as against to percent in the last month and by percent in August Pakistan: Inflation rate from to (compared to the previous year) This statistic shows the average inflation rate in Pakistan from to , with projections up until