Pakistan’s headline inflation hits new record at 38% in May 2023

Pakistan’s headline inflation hits new record at 38% in May 2023​

• Food inflation leads surge in general price levels

BR Web Desk Published June 1, 2023 Updated about an hour ago

Pakistan’s headline inflation hits new record at 38% in May 2023

Food inflation leads surge in general price levels

www.brecorder.com

There was little respite for the public as the consumer price index (CPI)-based inflation reading in Pakistan rose to a record 38% on a year-on-year basis in May 2023, the highest level since data was made available beginning July 1965.

According to the Pakistan Bureau of Statistics (PBS), the number stood at 36.4% in April 2023. On a month-on-month basis, inflation in Pakistan rose 1.6% in May.

A note from brokerage house Arif Habib Limited (AHL) stated May’s inflation number “takes 11MFY23 average inflation to 29.2% compared to 11.3% in 11MFY22”.

The breakup of components suggested food inflation in urban areas soared by a staggering 48.1% in May 2023 compared to May 2022. The rural areas fared worse with 52.4% price increase on a year-on-year basis.

Ismail Iqbal Securities Head of Research Fahad Rauf said the high inflation reading was led primarily by spike in food prices.



“In the food group, chicken price surged by a large margin which drove CPI in this group upward,” he said. “Secondly, footwear segment saw modest increase in prices.”

According to him, this is the peak of inflation and the number will likely fall to 30% for June 2023.

The inflation number for May is also higher than the prediction of Ministry of Finance that said it would be in the range of 34-36%.

In its Monthly Economic Outlook for May, the Ministry of Finance stated that “the inflation for the month of May 2023 may remain in the range of 34-36%”.

It added that improvement in the global supply chain will ease out domestic prices in the coming months.

Urban and rural inflation
According to the PBS, CPI inflation in urban areas increased to 35.1% on a year-on-year basis in May 2023 compared to an increase of 33.5% in the previous month.

On month-on-month basis, it increased to 1.5% in May 2023 as compared to an increase of 2.0% April 2023.

In rural areas of Pakistan, CPI inflation increased to 42.2% on year-on-year basis in May 2023 against 40.7% in April.

On month-on-month basis, it increased to 1.7% in May 2023 as compared to 3% in the previous month.

 

[protean]

Not trying to compare but I am posting this to give a perspective on inflation. Pakistan economy is truly mismanaged.

Retail inflation may dip closer to RBI’s 4% target in May, say economists​

 

[JohnyD]

Not trying to compare but I am posting this to give a perspective on inflation. Pakistan economy is truly mismanaged.

Retail inflation may dip closer to RBI’s 4% target in May, say economists​

Except oil, gas and gold things are pretty much within the affordable range in india...waiting for the day when TDS on salary will be abolished and everthing including oil and liquor come under single taxation system like gst

 

[HAIDER]

Pakistan’s headline inflation hits new record at 38% in May 2023​

• Food inflation leads surge in general price levels

BR Web Desk Published June 1, 2023 Updated about an hour ago

Pakistan’s headline inflation hits new record at 38% in May 2023

Food inflation leads surge in general price levels

www.brecorder.com

There was little respite for the public as the consumer price index (CPI)-based inflation reading in Pakistan rose to a record 38% on a year-on-year basis in May 2023, the highest level since data was made available beginning July 1965.

According to the Pakistan Bureau of Statistics (PBS), the number stood at 36.4% in April 2023. On a month-on-month basis, inflation in Pakistan rose 1.6% in May.

A note from brokerage house Arif Habib Limited (AHL) stated May’s inflation number “takes 11MFY23 average inflation to 29.2% compared to 11.3% in 11MFY22”.

The breakup of components suggested food inflation in urban areas soared by a staggering 48.1% in May 2023 compared to May 2022. The rural areas fared worse with 52.4% price increase on a year-on-year basis.

Ismail Iqbal Securities Head of Research Fahad Rauf said the high inflation reading was led primarily by spike in food prices.



“In the food group, chicken price surged by a large margin which drove CPI in this group upward,” he said. “Secondly, footwear segment saw modest increase in prices.”

According to him, this is the peak of inflation and the number will likely fall to 30% for June 2023.

The inflation number for May is also higher than the prediction of Ministry of Finance that said it would be in the range of 34-36%.

In its Monthly Economic Outlook for May, the Ministry of Finance stated that “the inflation for the month of May 2023 may remain in the range of 34-36%”.

It added that improvement in the global supply chain will ease out domestic prices in the coming months.

Urban and rural inflation
According to the PBS, CPI inflation in urban areas increased to 35.1% on a year-on-year basis in May 2023 compared to an increase of 33.5% in the previous month.

On month-on-month basis, it increased to 1.5% in May 2023 as compared to an increase of 2.0% April 2023.

In rural areas of Pakistan, CPI inflation increased to 42.2% on year-on-year basis in May 2023 against 40.7% in April.

On month-on-month basis, it increased to 1.7% in May 2023 as compared to 3% in the previous month.

Our economy should do better, all corruption is legalized now. The establishment party should close all accountability govt institutions, its just a waste of money. Imagine now NAB will only deal case smore than 50 crores. Less than 50 crores will be dealt by Allah.

 

[The Eagle]

Imagine now NAB will only deal cases less than 50 crores. Above 50 crores will be dealt by Allah.

I think its above 50 crore will be investigated by NAB, less than that figure is just a lucky bonus hit for the people supporting such regime. Like an open invitation to grab as much as you do, you are protected by law and don't cross the said figure of 50 crore, earn or save and we are good to meet in next term.

 

[Dalit]

Darflation. The Pakistani people are tolerating it though.

 

[Olympus81]

I think its above 50 crore will be investigated by NAB, less than that figure is just a lucky bonus hit for the people supporting such regime. Like an open invitation to grab as much as you do, you are protected by law and don't cross the said figure of 50 crore, earn or save and we are good to meet in next term.

So its kosher to do 49 crore corruption individually.

Or do 50 crore+ corruption and transfer to spouse or relative’s account.

Darflation. The Pakistani people are tolerating it though.

Dar is a classic economic hitman.

 

[SoulSpokesman]

@Dalit bro,

I suspect the only reason Pak people are not out in the streets is that there is a lot of unaccounted/black money which is floating around. People are able to use that for meeting their needs. Else, based on reported earnings, it would be difficult to make ends meet

Regards

 

[Olympus81]

Most of my relatives have converted most of their liquid reserves to gold.

Most people in Karachi doing the same.

 

[Zibago]

@Dalit bro,

I suspect the only reason Pak people are not out in the streets is that there is a lot of unaccounted/black money which is floating around. People are able to use that for meeting their needs. Else, based on reported earnings, it would be difficult to make ends meet

Regards

No thats not the reason
The reason they are not on the streets is because Pakistan is not a democracy
In India where they tried to bring in big agri in agriculture massive protests forced the government to reconsider its decision while in Pakistan the major agriculture union was forced/coerced to praise the same move that is being done by the army in Punjab where almost a million hectare is being handed over to the army for its agri joint ventures

 

[HAIDER]

I think its above 50 crore will be investigated by NAB, less than that figure is just a lucky bonus hit for the people supporting such regime. Like an open invitation to grab as much as you do, you are protected by law and don't cross the said figure of 50 crore, earn or save and we are good to meet in next term.

sorry, you are right.

No thats not the reason
The reason they are not on the streets is because Pakistan is not a democracy
In India where they tried to bring in big pharma in agriculture massive protests forced the government to reconsider its decision while in Pakistan the major agriculture union was forced/coerced to praise the same move that is being done by the army in Punjab where almost a million hectare is being handed over to the army for its agri joint ventures

Well, Agri land is vanishing in the name of new residential colony.

 

[POPEYE-Sailor]

so what if inflation goes to 80% who cares bcz we have this Allhomdillah <3

 

[Redbeanpaste]

Argentina is at 108% I think. We can still pull it back.

 

[Zibago]

sorry, you are right.


Well, Agri land is vanishing in the name of new residential colony.

DHA is to blame for it

Argentina is at 108% I think. We can still pull it back.

Argentina is suffering big time