Inflation at its highest in two years

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Salman Khan
Salman Khan

ISLAMABAD: Pakistan’s general inflation measured by Consumer Price Index (CPI) clocked in at 24-month peak of 13pc in January as prices of almost all commodities and utilities maintained a growing trend.

The sectors that posted double-digit growth in prices when compared to the same month of last year included perishable and non-perishable food items, energy, transportation, clothing, restaurants and health.

While household and energy rates increased by 15.5pc, the transport sector led the inflationary trend with an increase of over 23pc, followed by 13pc and 14pc for perishable and non-perishable food items, restaurants and hotels 13pc and clothing 12pc.

This is the highest CPI inflation since January 2020 when it was 14.6pc.

“CPI inflation (General), increased by 13pc on a year-on-year basis in January 2022 as compared to an increase of 12.3pc in the previous month (December 2021) and 5.7pc in January 2021,” said Pakistan Bureau of Statistics (PBS). On a month-on-month (MoM) basis, CPI increased by 0.4pc in January 2022 as compared to a decrease of -0.02pc in the previous month and a decrease of -0.2pc in January 2021.

General inflation measured by consumer price index surges to 13pc in January

The CPI inflation for urban population increased by 13pc on a year-on-year (YoY) basis in January 2022 as compared to an increase of 12.7pc in the previous month and 5pc in January 2021. On a month-on-month basis, it increased by 0.1pc in January 2022 as compared to an increase of 0.3pc in the previous month and a decrease of -0.2pc in January 2021.

The CPI inflation for rural population was registered to have increased by 12.9pc on a year-on-year basis in January 2022 as compared to an increase of 11.6pc in the previous month and 6.6pc in January 2021. On a month-on-month basis, it increased by 0.9pc in January 2022 as compared to a decrease of -0.5pc in the previous month and a decrease of -0.3pc in January 2021.

The PBS said the sensitive price indicator (SPI) inflation on a YoY basis increased by 20.9pc in January 2022 as compared to an increase of 20.9pc a month earlier and an increase of 7.7pc in January 2021. On a MoM basis, it decreased by -0.8pc in January 2022 as compared to a decrease of -0.4pc a month earlier and a decrease of -0.8pc in January 2021.

The wholesale price index (WPI) inflation on a YoY basis increased by 24pc in January 2022 as compared to an increase of 26.2pc a month earlier and an increase of 6.4pc in January 2021. WPI inflation on a MoM basis increased by 0.6pc in January 2022 as compared to a decrease of -0.2pc a month earlier and an increase of 2.5pc in corresponding month i.e. January 2021.

Core inflation measured by non-food non-energy (urban) increased by 8.2pc on a YoY basis in January 2022 as compared to 8.3pc increase in the previous month and 5.4pc in January 2021. On a MoM basis, it increased by 0.8pc in January 2022 as compared to increase of 1.1pc in the previous month, and an increase of 0.9pc in January 2021.

Measured by NFNE, the core CPI (rural) increased by 9pc on a YoY basis in January 2022 as compared to an 8.9pc increase in the previous month and 7.8pc in January 2021. On a MoM basis, it increased by 1.2pc in January 2022 as compared to an increase of 1.1pc in previous month, and an increase of 1.1pc in corresponding month of last year.

Core inflation (trimmed) as measured by 20pc weighted trimmed mean urban increased by 10.6pc on a YoY basis in January 2022 as compared to 10.8pc in the previous month and 5.7pc in January 2021. On a MoM basis, it increased by 0.5pc in January 2022 as compared to an increase of 1.1pc in the previous month and an increase of 1.0pc in January 2021.

Measured by 20pc weighted trimmed mean rural increased by 10.9pc on a YoY basis in January 2022 as compared to 10.3pc in the previous month and by 8.1pc in January 2021. On a MoM basis, it increased by 1.1pc in January 2022 as compared to an increase of 1pc in the previous month and an increase of 1.2pc in January 2021.

The top few commodities whose prices increased in January when compared to December included Masoor (6.13pc), whole gram (4.79pc), fruits (4.11pc), gram flour (3.82pc), gram pulse (3.44pc), Mash (3.37pc), wheat (2.68pc), Moong (1.88pc), meat (1.78pc) and rice (1.28pc). Woolen readymade garments (6.67pc), solid fuel (5.16pc), hosiery (1.93pc), motor fuel (1.75pc), cleaning and laundering (1.59pc), washing soap/detergents/match box (1.46pc) and liquefied hydrocarbons (1.29pc).

When compared to January 2021, the prices of cooking oil increased by 54.33pc in January 2022, vegetable ghee by 47.4pc, mustard oil by 46.68pc, Masoor by 41.3pc, fruits by 28.35pc, whole gram by 24.7pc, meat by 22.38pc, chicken by 17.08pc, gram pulse by 15.67pc, beans by 15.37pc, Mash by 12.46pc and vegetables by 11.58pc, electricity charges by 56.20pc, liquefied hydrocarbons by 53.35pc, motor fuel by 36.22pc, footwear by 25.47pc, cleaning and laundering by 22.03pc, washing soap/detergents/match box by 17.95pc, motor vehicle accessories by 14.04pc, woolen readymade garments by 13.03pc and plastic products by 11.72pc.

Published in Dawn, February 2nd, 2022

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