Pakistan inflation slows to almost four-year low

Pakistan’s annual consumer price inflation slowed to 6.9 per cent in September, Pakistan Bureau of Statistics (PBS) data showed on Tuesday, the lowest in more than three years.

Annual inflation had slowed the previous month to 9.6 per cent, the first single digit reading in more than three years.

Tuesday’s data from the Pakistan Bureau of Statistics also showed that the monthly consumer price index in September stood at -0.5 per cent.

“Due to aggressive monetary tightening, SBP (State Bank of Pakistan) has achieved in bringing inflation below 7 per cent one year ahead of target,” said Mohammad Sohail, chief executive officer at brokerage Topline Securities.

In an economic outlook published last week the finance ministry said it expected annual inflation to decrease to 8-9 per cent in September and October.

Year-on-year

Urban

Food item prices that increased included: Onions (78pc), Pulse Gram (56.98pc), Besan (47.53pc), Fish (29.85pc), Fresh Vegetables (29.17pc), Milk Powder (21.09pc) and Chicken (21.08pc).

Non-food items prices that increased: Gas Charges (318.74pc), Motor Vehicle Tax (168.79pc), Dental Services (29.47pc), and Cotton Cloth (19.63pc).

Rural

Food item prices that increased included: Onions (89.74pc), Pulse Gram (48.05pc), Besan (39.23pc), Milk Powder (26.07pc), Beans (24.29pc), and Meat (23.27pc).

Non-food items that increased: Motor Vehicle Tax (126.61pc), Education (22.73pc), Personal Effects (22.05pc), Cotton Cloth (19.19pc), and Communication Services (18.70pc).

Month-on-month

Urban:

Food item prices that increased included: : Besan (14.67pc), Pulse Gram (13.48pc), Eggs (7.33pc), Gram Whole (4.98pc), Onions (4.94pc) and Condiments and Spices (3.32pc)

Non-food items prices that increased: Electrical Appliances for Personal (3.02pc), Dental Services (3.01pc), Postal Services (2.48pc), and Newspapers (2.39pc).

Rural

Food item prices that increased included: Besan (14.40pc), Onions (12.75pc), Pulse Gram (10.12pc), Eggs (8.54pc), Gram Whole (4.54pc), and Meat (3.74pc).

Non-food items that increased: Water Supply (5.19pc), Personal Effects (2.68pc), Dental Services (2.38pc) and Construction Input Items (1.88pc).