• Tuesday, February 25, 2020

Consumer Inflation Jumps to 10.3% in July 2019

Discussion in 'Pakistan Economy' started by Muhammad Omar, Aug 2, 2019.

  1. Muhammad Omar

    Muhammad Omar ELITE MEMBER

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    [​IMG]

    Pakistan’s consumer inflation rate jumped to 10.3% year-on-year in July, 2019 as compared to an increase of 8.9% in June 2019 and 5.8% in July 2018. The last time inflation entered the double digits was in November 2013 and recorded at 10.9%.

    On a month-on-month basis, it increased by 2.3% in July 2019 as compared to an increase of 0.4% in the previous month and an increase of 0.9% in the corresponding month i.e. July 2018.



    According to the Pakistan Bureau of Statistics, the increase was driven by higher food and fuel prices with a growing squeeze on household budgets. There was a significant increase in fuel and energy prices which were up by 143% and 23%. The increase in overall prices has come one the back of Rupee’s devaluation against the US dollar.

    WPI inflation on YoY basis increased by 13.5% in July 2019 as compared to an increase of 12.7% a month earlier and an increase of 10.5% in July 2018.

    The core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.8% on (YoY) basis in July 2019 as compared to an increase of 7.2% in the previous month and 7.6% in July 2018.

    SPI inflation on YoY basis increased by 12.2% in July 2019 as compared to an increase of 10.6% a month earlier and an increase of 3.6% in July 2018.

    [​IMG]

    Top few commodities which varied from previous year i.e. July, 2018 with a double-digit increase as compared with July 2019 were:

    • Onions (58.83%),
    • Pulse Moong (47.62%),
    • Cigarettes (37.37%),
    • Gur (31.37%),
    • Sugar (30.72%),
    • Pulse Mash (Washed) (22.27%),
    • Potatoes (21.07%),
    • Spices (12.91%),
    • Pulse Gram (12.29%),
    • Meat (11.97%),
    • Pulse Masoor (10.78%),
    • Wheat Flour (8.63%),
    • Cooking Oil (8.57%),
    • Rice (6.83%),
    • Tea (5.39%)
    • Milk Fresh (5.24%)
    The Non-food items that witnessed an increase in prices during July 2019 against the same month of the last year were:

    • Gas (142.57%),
    • Motor Fuel (22.68%),
    • Motor Vehicles (20.36%),
    • Personal Equipments (18.17%),
    • Construction Input Items (14.97%),
    • Motor Vehicle Accessories (13.27%),
    • Electricity (11.33%),
    • Transport Services (8.14%),
    • Personal Care (6.83%)
    • Household Servant (6.20%).
    The items that saw a decrease in price during the month of July 2019 as compared with July 2018 were:

    • Tomatoes (18.07%),
    • Eggs (11.45%),
    • Betel Leaves & Nuts (10.26),
    • Gram Whole (3.46%)
    • Chicken (2.91%).
    Pakistan Bureau of Statistics collects the retail prices and computes CPI for a basket of 487 items collected from 40 cities and 76 markets. For each item, four quotations are collected from each market on a monthly basis
     
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  2. Yaseen1

    Yaseen1 SENIOR MEMBER

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    for developing country it is very bad,developed countries can sustain inflation
     
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  3. Retired Troll

    Retired Troll ELITE MEMBER

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    Maybe GoP thinks these are luxury items.

    Tomatoes are being imported from India and Iran.
     
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  4. Yaseen1

    Yaseen1 SENIOR MEMBER

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    to be alive is also a luxury item in the eyes of govt,when you are dead only then luxuries end for govt
     
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  5. Retired Troll

    Retired Troll ELITE MEMBER

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    do not consider yourself this lucky. when you die. you will have trouble finding a grave and that grave will be taxed too.
     
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  6. Yaseen1

    Yaseen1 SENIOR MEMBER

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    oh I forgot this,I think people may start burying their loved ones in their homes after this to evade this tax
     
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  7. Retired Troll

    Retired Troll ELITE MEMBER

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    well if you chose to burn your dead you will have to pay environmental tax on it as well.

    This inflation will force the poor towards crime and terrorism and it will be all worthless despite having a handsome face at the helm.
     
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  8. Hex0maniac

    Hex0maniac FULL MEMBER

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    thats what happen when you intentionally de industrialize a country for 10 years.
    low to no f*(ks given to dams and water preservation and farm land and yield research for 40 years.
    and now we've reached the point where we are importing basic necessities.
    its gonna take time InshahAllah things will be back to normal.
     
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  9. Norwegian

    Norwegian ELITE MEMBER

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    It is not bad. It is logical consequence of previous governments economic mismanagement.