ISLAMABAD: Pakistan’s headline inflation accelerated to record-high level in January amid supply constraints for food products and significant surge in price of petroleum products. Consumer prices rose 27.6 percent compared to 13 percent in same month of last year, according to data released by Pakistan Bureau of Statistics (PBS). This is highest year-on-year inflation after May 1975 when median rate clocked in at 27.77 percent.

On month-on-month basis, inflation remained elevated, jumping 2.9 percent as nearly 6,000 containers are stranded at ports, including thousands of tonnes of poultry feed ingredients that pushed chicken prices to record earlier this year.

Inflation rate which has lingered above 20 percent since June after coalition government curtailed imports has been aggravating due to logjam of containers.

Wholesale Price Index (WPI), which captures prices also rose sharply by 28.53 percent in January compared to 24 percent in same month year ago. PBS reported that overall inflation rate recorded an increase in both urban (24.4pc) and rural areas (32.3pc). In January last year, inflation rate in urban areas was 13 percent and in rural areas it stood at 12.9 percent.

Analysts expect inflation rate increase further amid impact of recent rupee depreciation and increase in price of petroleum products.

Published in The Daily National Courier, February, 02 2023

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