Monday, April 12, 2021  | 28 Shaaban, 1442
Samaa TV
Facebook Twitter Youtube
HOME > Money

Pakistan inflation at lowest level in two years: report

Some food items saw their prices decrease in January

SAMAA | - Posted: Feb 1, 2021 | Last Updated: 2 months ago
SAMAA |
Posted: Feb 1, 2021 | Last Updated: 2 months ago
Pakistan inflation at lowest level in two years: report

Photo : SAMAA TV FILE

Inflation in Pakistan was recorded at 5.7% in January, which is the lowest in two years, according to the IM Securities.

It was 14.6% in January 2020 and 8% in December 2020.

The urban consumer price index (CPI) or inflation fell to 5.0% in January from 7% in December. The rural inflation dropped to 6.6% in January from 9.5% in December.

“Urban and rural food inflation of 7.3% and 7.2% in January respectively, is at the lowest level they have been since July 2019,” the IM Securities said in a research report. “This was possible because the government addressed recent supply issues in wheat and sugar through imports and major perishable items are down 20% year on year.”

But the report said this may be a short-term effect as prices have been stabilized due to imports. Food items were still exhibiting double-digit year-on-year growth rates. The research house believes food inflation can rebound in the coming months.

Deceleration in the inflation rate was largely due to a low-base effect of January 2020 when inflation was at 14.6%, it said.

“The deceleration in CPI (inflation) is largely due to a low-base effect of January 2020 (CPI of 14.6%) and receding food inflation, which has decreased to 2.2% month on month,” the report said.

“Core inflation, however, exhibited greater stability. Urban core inflation is 5.4% in January against 5.6% in December. Rural core inflation, on the other hand, rose to 7.8% against 7.7% in the previous month.

“It is noteworthy that core inflation has remained steady around since July 2020, despite 7% year on year increase in large scale manufacturing during July-November period,” the report read further.

“There are no signs of the economy overheating, as stated by the State Bank in the recent monetary policy [announcement].”

The food items, whose prices increased in urban areas during the month, were sugar (14.76%), mustard oil (10.18%), wheat (8.17%), vegetable ghee (6.06%), fruits (5.39%), cooking oil (3.28%), milk fresh (2.46%), pulse moong (2.02%) and fish (1.64%).

Food items, whose prices decreased, included potatoes (33.57%), tomatoes (30.03%), chicken (28.48%), onions (24.87%), eggs (15.39%), vegetables (10.14%) and condiments and spices (7.54%).

In rural areas, the price of sugar rose 14.26%, mustard oil 7%, cooking oil 6.22%, wheat 5.88%, vegetable ghee 5.62%, wheat flour 4.21%, fruit 3.75%, butter 2.93%, pulse moong 2.74%, grain whole 2.31% and pulse mash 1.85%.

The price of potato decreased 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%.

FaceBook WhatsApp
 
HOME  
 
 
RELATED STORIES

Tell us what you think:

Your email address will not be published.

FaceBook WhatsApp
 

 
 
b4u global pakistan, b4u global investment, b4u global malaysia, b4u scam in pakistan, b4u global scam, b4u global scam or real, b4u trades scam, b4u investment plan pakistan, b4u investment plan pakistan in urdu, b4u registered with secp, b4u registration in pakistan, b4u global registered with secp, b4u investment fake pakistan, b4u investment fake or real, b4u investment fake news, b4u investment fake investment, samaa news live, b4u global, b4u global kya hai
 

MOST READ
MOST READ
Proton reveals the price of its sedan Saga
What is B4U Global and is it a legitimate business?
MG Motors’ MG-ZS EV: A promising electric SUV
Service Global Footwear IPO: How much the stock is worth?
Gold price falls Rs2,000 in Pakistan over last three days
Pakistan fixes nisab of zakat at Rs80,933
Explainer: Is B4U’s RS Coin a fake digital currency?
Service Global raises Rs2.175 billion from IPO
 
 
 
 
 
About Us   |   Anchor Profiles   |   Online Advertising   |   Contact Us   |   Feedback   |   Apps   |   FAQs   |   Authors   |   Comment Policy
Facebook   |   Twitter   |   Instagram   |   YouTube   |   WhatsApp