September inflation edges up to 9% in Pakistan

 

• On a monthly basis, inflation records an increase of 2.1% owing to significant changes in food, housing, construction indices.
• Core inflation surges to 6.4% in urban areas in September, reports the Pakistan Bureau of Statistics.
• The average inflation rate for July-September of the current fiscal year stands at 8.58%, according to the PBS.

---

The month of September saw a new round of increased prices of consumer items as inflation edged up to 9% from 8.4% in August, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

On a month-on-month basis, inflation increased by 2.1% owing to significant changes in three indices — food, housing, and construction.

Speaking to Geo.tv, an analyst from Arif Habib Limited, Sana Tawfiq, said that the inflation rate was way above the market expectation.

“A significant increase of 2.1% on a month-on-month basis came on the back of three sectors — food, transport, and housing," she said.

Tawfiq elaborated that the increase in the prices of perishable items in the food group, rising oil prices internationally and locally, and the surge in electricity prices in Pakistan have impacted the three sectors. Resultantly, this impact was significantly observed in the inflation rate.

The national data collection agency has reported the latest inflation figures after the Monetary Policy Committee (MPC) meeting, which announced a 25bps hike in the policy rate for the next two months.

The Wholesale Price Index (WPI), which captures prices in the wholesale market, also rose sharply by 19.6% in September compared to 4.3% in the same month a year ago.

The government has set the average inflation target for the ongoing fiscal year at 8.5%, indicating that the year-on-year inflation may remain in double digits in the fiscal year 2021-22.

Tawfiq said that keeping in view the economic indicators, it is expected that inflation will remain on the higher side by the end of this year.

https://www.geo.tv/latest/373445-september-inflation-edges-up-to-9-in-pakistan