Pakistan's Inflation Rates Surge, Impacting Citizens' Purchasing Power

In June 2024, Pakistan witnessed a significant increase in inflation rates, as reported by the Pakistan Bureau of Statistics (PBS). The Consumer Price Index (CPI) based inflation surged to 12.6% compared to the same period last year, marking a notable rise from the 29.4% recorded in June 2023. This increase in inflation has implications for the cost of living and purchasing power of citizens across the country.

Breaking down the data further, urban CPI inflation rose to 14.9% year-on-year in June 2024, up from 27.3% in June 2023. Similarly, rural CPI inflation also saw an uptick, reaching 9.3% in June 2024 compared to 32.4% in June 2023. These figures highlight the widespread impact of inflation on both urban and rural populations.

The Sensitive Price Indicator (SPI) inflation climbed to 16.6% year-on-year in June 2024, indicating a consistent upward trend in prices. Additionally, the Wholesale Price Index (WPI) inflation increased to 10.6% year-on-year in June 2024, reflecting the broader economic challenges faced by the country.

Core inflation, which excludes food and energy prices, showed varying trends. Urban core inflation reached 12.2% year-on-year in June 2024, while rural core inflation stood at 17.0% during the same period. These core inflation rates provide insights into the underlying inflationary pressures affecting different segments of the population.

The rise in inflation rates in Pakistan, as evidenced by the latest data from the PBS, underscores the challenges faced by consumers in managing their expenses. It is crucial for policymakers and stakeholders to address the root causes of inflation and implement measures to mitigate its impact on the economy and the general public.