Pakistan’s consumer price index (CPI) in May rose 11.8pc from a year earlier, data from the Pakistan Bureau of Statistics (PBS) showed on Monday, 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.

Month-on-month

Urban:

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).

Rural:

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).

The items whose prices decreased the most over the previous month included Tomatoes (57.91pc), Onions (47.97pc), Chicken (37.57pc), Wheat Flour (18.80pc), Wheat (18.14pc), Fresh Vegetables (17.96pc), Liquified Hydrocarbons (7.84pc), Electricity Charges (4.50pc) and Motor Fuels (3.41pc).

Year-on-year

Urban:

Item prices that increased on a year-on-year (YoY) basis included Gas Charges (318.74pc), Electricity Charges (58.78pc), Transport Services (32.28pc), Onions (86.64pc), Tomatoes (55.46pc), Condiments and Spices (39.17pc), Beans (30.89pc) and Fish (29.64pc).

Item prices that decreased on a YoY basis included Wheat (29.06pc), Wheat Flour (28.48pc), Chicken (22.30pc), Cooking Oil (19.39pc), Fresh Fruits (18.20pc), Vegetable Ghee (16.51pc), Mustard Oil (15.14pc), Eggs (8.50pc) and Liquified Hydrocarbons (11.18pc).

Rural:

Item prices that increased on a YoY basis included Onions (82.08pc), Tomatoes (73.95pc), Beans (38.06pc), Fresh Vegetables (28.22pc), Fish (24.29pc), Electricity Charges (58.78pc), Transport Services (48.59pc), Water Supply (31.65pc) and Education (24.19pc).

Item prices that decreased on a YoY basis included : Wheat Flour (28.38pc), Wheat (25.82pc), Chicken (25.30pc), Fresh Fruits (22.40pc) and Liquified Hydrocarbons (3.99pc).

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...
Islamabad protest
Updated 20 Nov, 2024

Islamabad protest

As Nov 24 draws nearer, both the PTI and the Islamabad administration must remain wary and keep within the limits of reason and the law.
PIA uncertainty
20 Nov, 2024

PIA uncertainty

THE failed attempt to privatise the national flag carrier late last month has led to a fierce debate around the...
T20 disappointment
20 Nov, 2024

T20 disappointment

AFTER experiencing the historic high of the One-day International series triumph against Australia, Pakistan came...