ISLAMABAD: The consumer price index (CPI)-based annual inflation rose to 37.97 per cent in Pakistan in May 2023, the highest level since data was made available beginning July 1965.
According to the Pakistan Bureau of Statistics (PBS), the previous highest number witnessed in April 2023 was 36.4%. On a month-on-month basis, the country’s inflation rose by 1.6% in the month of May.
Among all the components, food inflation was the one that profoundly affected the ordinary people—in bifurcating the features further, showing that food inflation in cities increased by 48.1% in May 2023 against May 2022. The rural areas fared no better, with a 52.4% increase in price on a year-on-year basis.
In food items, the chicken price was one of the key items that experienced a significant increase which drove CPI in this group upward. Food items witnessed considerable growth, while non-food items like footwear etc, showed a modest surge.
Urban and rural inflation in May 2023
According to the Pakistan Bureau of Statistics, CPI inflation in urban areas enhanced to 35.1% on a year-on-year basis in May 2023 against an increase of 33.5% in April.
On a month-on-month basis, it witnessed an increase to 1.5% in May 2023 against 2.0% increase in April 2023.
CPI inflation enhanced to 42.2% in rural areas of the country on a year-on-year basis in May 2023 compared to 40.7% in April.
On m-o-m basis, it increased to 1.7% in May 2023 compared to 3% in April 2023.
Economy experts believe the country’s current inflation has reached its peak and might drop in June 2023.
It is worth mentioning that earlier, the finance ministry predicted (Monthly Economic Outlook ) inflation numbers ranging from 34-36 percent, however, the current inflation surpassed that number.
