According to the Pakistan Bureau of Statistics (PBS), the Consumer Price Index (CPI)-based inflation in Pakistan surged to a record-breaking 38% on a year-on-year basis in May 2023. This marks a significant increase from the previous month’s inflation rate of 36.4% and the 13.8% recorded in May 2022.
The inflation reading for May sets a new milestone, surpassing the previous record of 36.4% set in April. On a month-on-month (MoM) basis, inflation increased by 1.6% in May 2023, compared to a 2.4% increase in the previous month and a 0.4% increase in May 2022.
The average CPI inflation for July 2022 to May 2023 stood at 29.16%, significantly higher than the 11.29% recorded during the same period last year.
In terms of urban areas, CPI inflation rose to 35.1% YoY in May 2023, compared to a 33.5% increase in the previous month and a 12.4% increase in May 2022. On an MoM basis, urban inflation increased by 1.5% in May 2023, compared to a 2.0% increase in the previous month and a 0.3% increase in May 2022.
For rural areas, CPI inflation soared to 42.2% YoY in May 2023, surpassing the 40.7% increase in the previous month and the 15.9% increase in May 2022. On an MoM basis, rural inflation rose by 1.7% in May 2023, compared to a 3.0% increase in the previous month and a 0.6% increase in May 2022.
Other measures of inflation also witnessed significant increases. The Sensitive Price Index (SPI) inflation reached 43.0% YoY in May 2023, compared to 42.1% in the previous month and 14.1% in May 2022. The Wholesale Price Index (WPI) inflation rose to 32.8% YoY in May 2023, compared to 33.4% in the previous month and 29.6% in May 2022.
Core inflation, measured by non-food non-energy (NFNE), increased by 20.0% YoY in urban areas and 26.9% YoY in rural areas in May 2023.
The surging inflation poses significant challenges for Pakistan’s economy and the purchasing power of its citizens. Efforts to curb inflation and stabilize prices are crucial to alleviate the burden on consumers and ensure economic stability.
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