Pakistan’s consumer price index (CPI) in May rose 11.8pc from a year earlier, data from the Pakistan Bureau of Statistics (PBS) showed, the lowest reading in 30 months and below the finance ministry’s projections.
The lowest reading comes a week before the central bank meets to review the key rate which has remained at a historic high of 22pc for seven straight policy meetings.
Pakistan has been beset by inflation above 20pc since May 2022. Last year in May, inflation jumped as high as 38pc as the country navigated reforms as part of an International Monetary Fund (IMF) bailout programme. However, inflation has since slowed down.
Month-on-month consumer prices fell 3.2pc, the biggest such drop in more than two years.In its monthly economic report released last week, Pakistan’s finance ministry said it expected inflation to hover between 13.5pc and 14.5pc in May and ease to 12.5pc to 13.5pc by June 2024.
“The inflation outlook for May 2024 continues on a downward trajectory, attributed to elevated inflation levels (in the) previous year and improvements in (the) domestic supply chain of perishable items, staple food like wheat and (a) reduction in transportation costs,” the report said.
The actual readings have come in even lower due to a sharper dip in food prices, said Amreen Soorani, head of research at JS Global Capital.
The items whose prices saw the increase on a month-on-month (MoM) basis included Potatoes (14.73pc), Meat (4.06pc), Beans (3.91pc), Eggs (1.60pc), Vegetable Ghee (1.27pc), Cooking Oil (1.26pc), Dental Services (14.64pc), Doctor (MBBS) Clinic Fee (5.48pc), Transport Services (3.35pc), Hospital Services (2.73pc) and Text Books (2.33pc).
The items whose prices decreased the most over the previous month included Tomatoes (51.23pc), Onions (51.15pc), Chicken (35.28pc), Wheat (22.17pc), Wheat Flour (20.12pc), Fresh Fruits (8.06pc), Liquified Hydrocarbons (9.45pc), Electricity Charges (4.50pc), Motor Fuel (3.18pc) and Communication Apparatus (2.35pc).
The items whose prices saw the increase on a MoM basis included Potatoes (22.49pc), Meat (2.18pc), Milk Powder (1.52pc), Beverages (1.37pc), Pulse Gram (1.08pc), Education (2.76pc), Plastic Products (2.07pc) and Marriage Hall Charges (2.01pc).
