ISLAMABAD: After a brief drop to 23.8 percent in November, consumer inflation increased to 24.5 percent in December, primarily affecting the country’s rural population, where prices increased by almost 29 percent.
When compared to the same period in the previous year, the average six-month inflation rate (July to December 2022) increased by 25.02 percentage points. When compared to their urban counterparts, who experienced inflation of 21.6 percent in December and an average of 23.1 percent over the course of six months, it was more pronounced in the rural areas, which are home to more than two-thirds of the population.
The Pakistan Bureau of Statistics (PBS) published monthly data for December 2022. With the exception of perishable food items, all of the groups that make up the national consumer price index (CPI) showed an upward trend. However, the most damaging effect was food inflation of 35.5 percent in December 2022, and the rate of increase in the price of perishable goods was even higher (56 percent) in December 2022 than it was in December 2021.
According to the PBS, the general inflation CPI rose by 24.5 percentage points year-over-year (YoY) in December 2022, up from 23.8 percentage points the month before. The CPI overall had fallen to 23.8 percentage points last month from a peak of 26.6 percentage points in October, but the drop was only temporary.
In December 2022, urban inflation rose to 21.6 percentage points year-over-year, compared to 21.6 percentage points the month before and 12.7 percentage points in December 2021. On the other hand, in December 2022, the rural CPI rose to 28.8 percent year-over-year, up from 27.2 percent the month before and 11.6 percent in December 2021.
The Ministry of Finance anticipated average annual inflation of 21 to 23 percentage points, so the rate of inflation generally increased in line with expectations.
After excluding volatile food and energy prices, core inflation (urban) increased by 14.7 percentage points year-over-year in December 2022, compared to 14.6 percentage points the month before and 8.3 percentage points in December 2021.
It increased by 1.2 percent month-over-month (MoM) in December 2022, compared to an increase of 0.8 percent the previous month and an increase of 1.1 percent in the corresponding month of the previous year, which was December 2021.
In December 2022, rural inflation increased by 19 percentage points year-over-year, compared to 18.5 percentage points the month before and 8.9 percentage points in December 2021. On a monthly basis, it increased by 1.5 percent in December 2022, compared to an increase of 2.1 percent in the previous month and 1.1 percent in the corresponding month of the previous year, which was December 2021.
According to PBS data, the majority of food items saw significant price increases. A portion of the significant food wares which became costlier by December 2022 over same month of last year included onions (414.98 to 463.5pc), tea (63.81pc), wheat (57.26pc), eggs (54.38pc), gram entire (53.18pc), rice (46.61pc), besan (46.41pc), beat gram (45.2pc), chicken (43.76pc), beat moong (42.82pc), mustard oil (41.48pc), wheat flour (40.58pc), beat pound (38.28pc), cooking oil (31.97pc), vegetable ghee (30.07pc), milk new (26pc), potatoes (24.72pc), dry organic products (36.25pc), new organic products (33.94pc) and beat masoor (24.61pc).
Then again, the costs of sauces and flavors went somewhere near 8.05pc and gur 2.68pc in Dec 2022 when contrasted with a year sooner.
Motor fuel (49.45 percent), washing soap/detergents/match box (46.65 percent), stationery (46.56 percent), construction input items (30.59 percent), motor vehicle accessories (29.36 percent), solid fuel (28.62 percent), woolen readymade garments (24.12 percent), household servant (20.46 percent), and construction wage rates (13.7 percent) were among the items whose prices increased.
Fresh fruits (13.36 percent), onions (9.99 percent), eggs (9.71 percent), wheat (9.45 percent), dry fruits (8.84 percent), rice (5.85 percent), chicken (5.43 percent), beans (3.81%), wheat flour (3.66 percent), sugar (3.12 percent), milk fresh (1.51 percent), and pulse moong (0.32 percent) were the top food commodities whose prices increased in December 2022 over November.
In a similar vein, the prices of non-food items increased by 6.63 percent, including solid fuel, washing soap, detergent, and match box (5.11 percent), woolen readymade garments (3.06 percent), woolen cloth (2.03 percent), stationery (1.91 percent), marriage hall fees (1.68 percent), and construction input items (1.51 percent).
However, prices for fresh vegetables decreased by 24.89 percent, potatoes by 21.33 percent, besan by 3.23 percent, pulse masoor by 2.41 percent, pulse gram by 2.14 percent, vegetable ghee by 2.03 percent, gram whole by 1.9 percent, cooking oil by 1.39 percent, gur by 0.31 percent, and pulse mash by 0.26 percent.
Electricity and motor fuel prices decreased by 3.34 percent and 1.82 percent, respectively, between November and December among non-food items.
