ISLAMABAD  -  The inflation rate has slightly increased to 7.2 percent in October this year after declining to 6.9 percent in September, which was the lowest in 44 months.

Inflation measured by consumer price indicator (CPI) was recorded at 7.2 percent in October this year over the corresponding period of the last year, according to the latest data of Pakistan Bureau of Statistics (PBS). Inflation has increased after showing decline in last three consecutive months as it was recorded at 11.1 percent in July, 9.6 percent in August and 6.9 percent in September this year. For the fiscal year 2024-25, the federal government has set inflation rate target at 12 percent.

According to the latest data of PBS, the inflation on a monthly basis has increased by 1.2 percent in October 2024 as compared to decrease of 0.5 in the previous month (September) and an increase of 1 percent in October 2023. The CPI inflation (Urban) remained stable at 9.3 percent on a year-on-year basis in October 2024. Meanwhile, the CPI inflation (Rural) has enhanced by 4.2 percent.

The government had already projected that inflation might further fall in two months. The ministry of finance had projected that inflation will remain within range of 6-7% in October and further down to 5.5 – 6.5% by November. “Economic recovery will take advantage of declining inflation and continuation of fiscal consolidation in coming months,” the ministry noted in its monthly Update and Outlook October 2024. During Jul-September FY2025, CPI Inflation stood at 9.2% while it was 29.0% in the same period last year. YoY CPI inflation in September 2024 was recorded at 6.9% - lowest level in 44 months, compared to 9.6% percent in the previous month and 31.4 percent in September 2023.

The break-up of inflation of 7.2 percent showed that food and non-alcoholic beverages prices increased by 0.93 percent last month. Similarly, health and education charges went up by 12.29 percent and 10.03 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 19.24 percent in the last month. Meanwhile, the prices of alcoholic beverages and tobacco went up by around 6.39 percent. Prices of clothing and footwear increased by 14.6 percent and furnishing and household equipment maintenance charges 5.94 percent. Recreational charges and those related to culture went up by 7.34 percent in the period under review, while amounts charged by restaurants and hotels by 7.94 percent in October 2024 as compared to the same month last year.

In rural areas, the food items which saw their prices increased included fresh vegetables (21.32 percent), onions (8.56 percent), fish (7.35 percent), pulse gram (6.88 percent), besan (5.42 percent), condiments and spices (5.29 percent), chicken (4.25 percent), wheat flour (3.77 percent), tomatoes (3.36 percent), gram whole (3.23 percent), butter (2.86 percent), cooking oil (2.66 percent) and wheat (2.28 percent). In non-food commodities, prices of following items enhanced: dental services (6.09 percent), electricity charges (5.02 percent), personal effects (4.09 percent), hospitals services (1.51 percent), recreation and culture (1.43 percent) and water supply (1.34 percent).

In rural areas, prices of the following items decreased: sugar (4.16 percent), pulse mash (2.52 percent), gur (1.70 percent), pulse masoor (1.65 percent), potatoes (0.89 percent), eggs (0.48 percent), bakery and confectionary (0.41 percent) and wheat products (0.20 percent).

In urban areas, prices of following commodities increased: fresh vegetables (12.90 percent), onions (7.64 percent), wheat (5.96 percent), pulse gram (5.73 percent), fish (5.54 percent), condiments and spices (5.50 percent), chicken (4.61 percent), tomatoes (3.96 percent), wheat flour (3.52 percent), dessert preparation (2.76 percent), besan (2.41 percent), gur (2.35 percent), gram whole (2.35 percent) and pulse moong (2.33 percent).