Consumer Price Index Inflation Increased to 8.4% YoY in August 2021

Pakistan’s Consumer Price Index-based inflation clocked in at 8.4 percent on a year-over-year basis in August 2021, according to data released by the Pakistan Bureau of Statistics.

This follows Pakistan’s Consumer Price Index (CPI) inflation of 8.2 percent in August 2020, and 8.4 percent in July 2021.

On a monthly basis, the CPI grew by 0.6 percent in August 2021 as compared to an increase of 1.3 percent in July 2021 and 0.6 percent in August 2020.

Meanwhile, the National CPI rose by 0.58 percent in August 2021 over the previous month, and increased by 8.35 percent in the corresponding period last year.

The urban CPI climbed by 8.3 percent year-over-year (YoY) in August 2021 as compared to an increase of 8.7 percent in July 2021 and 7.1 percent in August 2020.

On a monthly basis, it increased by 0.5 percent in August 2021 against an increase of 1.29 percent in July 2021 and 0.8 percent in the same period last year.

The rural CPI increased by 8.4 percent YoY in August 2021 in comparison to an increase of 8.0 percent in the previous month and 9.9 percent in August 2020.

On a monthly basis, it increased by 0.7 percent in August 2021 as compared to an increase of 1.4 percent in the previous month and 0.4 percent last August.

The food commodities that contributed the most to the rise in urban CPI were tomatoes, the price of which climbed by 17.84 percent, vegetables, whose price rose by 12.52 percent; and beans, whose price increased by 5.09 percent.

Among non-food items, the commodities that drove the most change in urban CPI were liquefied hydrocarbons, whose prices were elevated by 18.23 percent; and motor fuel whose price rose by 2.80 percent.

S&P Global projected the country’s inflation to ease slowly to six percent in the coming years, supported by an end to the State Bank of Pakistan (SBP) policy of budget financing.

On a yearly basis, the food commodities that contributed the most to a rise in urban CPI were vegetable ghee that had a 36.34 percent increment in its price; tomatoes, whose price climbed by 35.15 percent; and cooking oil, whose price grew by 33.96 percent.

Among the non-food items, the commodities that drove the most change in urban CPI were liquefied hydrocarbons, the prices of which soared by 63.79 percent; footwear, the price of which rose by 16.2 percent; and motor fuel, the price of which increased by 15.82 percent.

On a monthly basis, the food commodities that impacted the rural CPI were vegetables, the prices of which climbed by 17.35 percent; tomatoes, whose price rose by 7.40 percent; and onions, whose price rose by 6.02 percent.

Among the non-food items, the commodities that influenced the most change in rural CPI were liquefied hydrocarbons, whose prices increased by 12.94 percent; motor fuels, whose prices increased by 2.97 percent; and construction input items that had a 2.37 percent increase in their prices.

On a yearly basis, the food commodities that resulted in the most change in the rural CPI were cooking oil, whose price had an elevation of 40.04; vegetable ghee, whose price climbed by 36.91 percent; and mustard oil whose price rose by 36.18 percent.

Among non-food items, the commodities that drove the most change in rural CPI were liquefied hydrocarbons, the prices of which surged by 48.36 percent; motor fuels, the prices of which rose by 14.62 percent; and hosiery, the price of which increased by 14.38 percent.

Source: Pro Pakistani