Pakistan’s Inflation Drops to Lowest Level in 22 Months

The Consumer Price Index (CPI) based inflation increased to 20.68 percent on a year-on-year basis in March 2024 as compared to an increase of 23.1 percent in the previous month and 35.4 percent in March 2023, according to the Pakistan Bureau of Statistics (PBS).

Inflation is significantly down due to the high base effect.

According to Arif Habib Limited, this is the lowest CPI-based inflation since May 2022.

On a month-on-month basis, it increased to 1.7 percent in March 2024 as compared to no change observed in the previous month and an increase of 3.7 percent in March 2023.

CPI inflation Urban increased to 21.9 percent YoY in March 2024 as compared to an increase of 24.9 percent in the previous month and 33.0 percent in March 2023. On an MoM basis, it increased to 1.4 percent in March 2024 as compared to an increase of 0.2 percent in the previous month and an increase of 3.9 percent in March 2023.

CPI inflation Rural increased to 19.0 percent on a YoY basis in March 2024 as compared to an increase of 20.5 percent in the previous month and 38.9 percent in March 2023. On an MoM basis, it increased to 2.1 percent in March 2024 as compared to a decrease of 0.3 percent in the previous month and an increase of 3.5 percent in March 2023.

SPI inflation on YoY increased to 25.9 percent in March 2024 as compared to an increase of 30.4 percent a month earlier and 40.4 percent in March 2023. On an MoM basis, it increased by 2.1 percent in March 2024 as compared to a decrease of 0.8 percent a month earlier and an increase of 5.8 percent in March 2023.

WPI inflation on a YoY basis increased to 14.8 percent in March 2024 as compared to an increase of 18.7 percent a month earlier and an increase of 37.5 percent in March 2023. On an MoM basis, it increased by 1.3 percent in March 2024 as compared to an increase of 1.1 percent in the previous month and an increase of 4.7 percent in the corresponding month of last year i.e. March 2023.

Core inflation (NFNE)

Measured by non-food non-energy Urban increased to 12.8 percent on a YoY basis in March 2024 as compared to an increase of 15.5 percent in the previous month and 18.6 percent in March 2023. On an MoM basis, it increased by 0.1 percent in March 2024 as compared to an increase of 0.3 percent in the previous month, and an increase of 2.5 percent in the corresponding month of last year i.e. March 2023.

Measured by non-food non-energy Rural increased to 20.0 percent on YoY basis in March 2024 as compared to an increase of 21.9 percent in the previous month and 23.1 percent in March 2023. On an MoM basis, it increased by 0.8 percent in March 2024 as compared to an increase of 0.4 percent in the previous month, and an increase of 2.4 percent in the corresponding month of last year i.e. March 2023.

Core inflation (Trimmed)

Measured by a 20 percent weighted trimmed mean Urban increased to 14.8 percent on a YoY basis in March 2024 as compared to 16.0 percent in the previous month and 28.7 percent in March 2023. On an MoM basis, it increased by 0.6 percent in March 2024 as compared to an increase of 0.3 percent in the previous month and an increase of 2.7 percent in the corresponding month of last year i.e. March 2023.

Measured by a 20 percent weighted trimmed mean Rural increased to 18.4 percent on a YoY basis in March 2024 as compared to 21.3 percent in the previous month and 35.0 percent in March 2023. On an MoM basis, it increased to 0.9 percent in March 2024 as compared to an increase of 0.4 percent in the previous month and an increase of 2.9 percent in the corresponding month of last year i.e. March 2023.