Inflation Drops to Lowest in 2 Years - Pakistan News Digest - Pakistan News Digest

Inflation Drops to Lowest in 2 Years - Pakistan News Digest

Inflation Drops to Lowest in 2 Years

Pakistan’s consumer inflation eased to 5.7 percent in January 2021, compared with December’s 8 percent.

According to the data released by the Pakistan Bureau of Statistics, CPI inflation General, increased by 5.7% on a year-on-year basis in January 2021 as compared to an increase of 8.0% in the previous month and 14.6% in January 2020. On a month-on-month basis, it decreased by 0.2% in January 2021 as compared to a decrease of 0.7% in the previous month and an increase of 2.0% in January 2020.

Prime Minister (PM) Imran Khan took to Twitter on Sunday and claimed that inflation has currently declined from the level it was at in 2018 when the Pakistan Tehreek-i-Insaf (PTI) had come to power.

His tweet read: “The government’s efforts are coming to fruition as both the consumer price index and core inflation had touched lower than the time of government’s formation”.

He went on to say, “More good news on the economic front. Consumer price index & core inflation are both now lower than when our government was formed”.

The premier also instructed his economic team to stay vigilant and ens­ure that inflation stays under control.

The Minister for Planning, Development & Special Initiatives, Asad Umar, concurred with the PM’s statement and tweeted that inflation during January 2021 had reduced to 5.7 percent while the core inflation had been at 5.4 percent.

He tweeted, “In July 2018, prior to the PTI government’s formation, CPI was 5.8 percent and core inflation was 7.6 percent”.

Inflation continues to decline. Jan inflation (CPI) is down to 5.7%. Core inflation is at 5.4%. Last month (jul 2018) prior to PTI govt formation, CPI was 5.8% & core was 7.6%. The rate of inflation is LOWER today then when the PTI govt was formed. #PMIKECONPOLICYSUCCESS

— Asad Umar (@Asad_Umar) January 31, 2021

 

According to PBS, the CPI inflation Urban, increased by 5.0% on a year-on-year basis in January 2021 as compared to an increase of 7.0% in the previous month and 13.4% in January 2020. On a month-on-month basis, it decreased by 0.2% in January 2021 as compared to a decrease of 0.3% in the previous month and an increase of 1.7% in January 2020.

CPI inflation Rural, increased by 6.6% on a year-on-year basis in January 2021 as compared to an increase of 9.5% in the previous month and 16.3% in January 2020. On a month-on-month basis, it decreased by 0.3% in January 2021 as compared to a decrease of 1.2% in the previous month and an increase of 2.4% in January 2020.

But the CPI basket prices are up by 23% and food prices by 31% since July 18. The prices of essential items have increased to between 50 and 80 percent in the retail market as compared to the prices in 2017-18.

According to the Economic Survey 2019-2020, the Consumer Price Index (CPI) had been 4.5 percent and core inflation had been 4.7 percent in 2017.

MONTH-ON-MONTH

The top few commodities which varied from the previous month are given below: –

FOOD
Increased: Sugar(14.26%), Mustard oil(7%), Cooking oil(6.22%), Wheat(5.88%), Vegetable ghee(5.62%),
Wheat Flour(4.21%), Fruits(3.75%), Butter(2.93%), Pulse Moong(2.74%), Gram Whole(2.31%) and Pulse Mash(1.85%).

Decreased: Potatoes(36.1%), Tomatoes(32.77%), Chicken(26.47%), Onions(25.99%), Vegetables(13.32%), Eggs(9.27%), Condiments and Spices(7.96%) and Pulse Masoor(0.42%).

NON-FOOD

Increased: Liquified Hydrocarbons(9.31%), Motor Fuels(4.72%), Tailoring(3.86%), Hosiry(2.78%), Doctor
Clinic Fee(1.92%), Personal Effects n.e.c.(1.61%) and Woolen Readymade Garments(1.55%).

Decreased: Electricity Charges(0.53%).

YEAR-ON-YEAR

The top few commodities which varied from the previous year i.e. January 2020 are given below: –

FOOD

Increased: Eggs(32.9%), Condiments and Spices(31.35%), Wheat(24.36%), Sugar(23.51%), Mustard oil(17.7%), Beans(17.34%), Vegetable ghee(17.27%), Cooking oil(15.52%), Pulse Mash(14.4%), Wheat Flour(13.67%) and Rice(13.37%).

Decreased: Tomatoes(36.17%), Vegetables(32.66%), Onions(32.59%), Potatoes(9.11%), Pulse Gram(8.8%), Fruits(6.77%), Gram Whole(5.98%) and Besan(4.94%).

NON-FOOD

Increased: Hosiry(21.86%), Doctor Clinic Fee(19.33%), Personal Effects n.e.c.(18.68%),Laundering(14.36%), Plastic Products(14.23%), Dental Services(11.27%), Furniture and Furnishing(10.91%), Woolen Readymade Garments(10.73%) and Tailoring(10.05%).

Decreased: Liquified Hydrocarbons(10.45%), Motor Fuels(6.81%) and Electricity Charges(4.38%).


Source: Propakistani

   

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