Consumer Inflation Grows to 11.40% in September: PBS

October 3, 2019 Off By Web Desk

Pakistan’s consumer inflation rate grew to 11.40% in September 2019 as compared to 5.4% in the same month last year. It was recorded at 10.5% in August 2019, increasing by 0.8% in September 2019.

Last month, PBS changed the base year from 2007-08 to 2015-16 but also decided to compute CPI inflation for a certain period based on the old base year 2007-08. According to PBS, the National CPI is now computed on the basis of urban and rural indices.

However, on the old methodology and old base year of 2007-08, the rate of inflation in September was 12.55% compared to 5.2% last year. While it was up by 0.95% compared to August 2019.

Under the new system, PBS analyzes CPI of urban and rural areas separately and then combines both results to determine National CPI which is considered the standard CPI-based inflation rate for the country. The urban CPI covers 35 cities and 356 consumer items whereas the rural CPI covers 27 rural centers and 244 consumer items. In the new base year (2015-16), national CPI for 12 major groups is also computed by taking a weighted average of urban CPI and rural CPI.

PBS has changed the base year for price statistics from 2007-08 to 2015-16 and the body’s Governing Council has directed that the CPI for the new base year (2015-16) will be published along with the CPI for old base year 2007-08 for some time.

CPI Urban inflation increased by 11.6% in September 2019 as compared to an increase of 10.6% from August 2019 and 5.6% in September 2018. It increased by 0.7% in September 2019 as compared to an increase of 1.5% in the previous month and a decrease of 0.1% from September 2018.

CPI Rural inflation increased by 11.1% in September 2019 as compared to an increase of 10.3% in the previous month and 5.1% in September 2018. On month-on-month basis, it increased by 0.8% in September 2019 as compared to an increase of 1.9% in the previous month.

The following commodities witnessed an increase on account of Urban CPI in September 2019 against August 2019:

Fresh vegetables 15.78%

Onions 10.86%

Tea 8.15%

Milk products 4.74%

Wheat flour 3.22 %

These items witnessed a reduction in urban regions:

Tomatoes 5.84%

Fresh fruits, 5.6%

Chicken 4.42%

Eggs 2.36%

On year-on-year (YoY) basis, these food items’ prices witnessed an increase:

Onions, 108.7%

Chicken 79.39%

Pulse Moong 46.77%

Cigarettes 37.97%

Sugar 36.93%

According to PBS, during the period under review only tomatoes’ price went down by 15.06%.

On a Year on Year basis, the following non-food items’ prices went up:

Gas charges 114.64%

Motor vehicle accessories 22.14%

Motor fuel 21.98%

Motor vehicles 21.21%

Construction input items 18.96%

Source; Pro Pakistani