Pakistan did not reach its goal to keep inflation at 21% for the financial year 2024.
Pakistan did not reach its goal to keep inflation at 21% for the financial year 2024. In June 2024, Pakistan’s Consumer Price Index (CPI) inflation rose to 12.6% year-on-year, up from 11.8% the previous month and significantly lower than the 29.4% recorded in June 2023. Month-on-month, CPI increased by 0.5% in June 2024, rebounding from a 3.2% decrease in May 2024 and a 0.3% decrease in June 2023.
Despite efforts, Pakistan missed its inflation target of 21% for the fiscal year 2023-24, reporting 23.41% inflation compared to 29.18% the previous year.
Urban CPI inflation reached 14.9% year-on-year in June 2024, up from 14.3% in May 2024 and lower than the 27.3% recorded in June 2023. On a monthly basis, urban CPI increased by 0.6% in June 2024, reversing a 2.8% decrease in May 2024 and a slight 0.1% increase in June 2023.
Rural CPI inflation was 9.3% year-on-year in June 2024, rising from 8.2% in May 2024 and lower than the 32.4% recorded in June 2023. Month-on-month, rural CPI increased by 0.3% in June 2024, recovering from a 3.9% decrease in May 2024 and a 0.8% decrease in June 2023.
Similarly, the Sensitive Price Indicator (SPI) inflation rose to 16.6% year-on-year in June 2024, up from 15.3% in May 2024 and lower than the 34.9% recorded in June 2023. Month-on-month, SPI increased by 1.33% in June 2024, recovering from a 4.0% decrease in May 2024 and a 0.2% increase in June 2023.
Wholesale Price Index (WPI) inflation increased to 10.6% year-on-year in June 2024, up from 9.9% in May 2024 and lower than the 22.4% recorded in June 2023. Month-on-month, WPI increased by 0.4% in June 2024, recovering from a 2.5% decrease in May 2024 and a 0.3% decrease in June 2023.
Core Inflation (Non-food Non-energy, NFNE) for urban areas increased to 12.2% year-on-year in June 2024, slightly down from 12.3% in May 2024 and lower than the 18.5% recorded in June 2023. Month-on-month, core inflation increased by 0.6% in June 2024, up from 0.4% in May 2024 and 0.7% in June 2023.
Core Inflation (Trimmed Mean) based on a 20% weighted average for urban areas increased to 10.3% year-on-year in June 2024, down from 11.0% in May 2024 and lower than the 22.9% recorded in June 2023. Month-on-month, trimmed mean core inflation increased by 0.6% in June 2024, up from a 0.5% decrease in May 2024 and a 0.8% increase in June 2023.
For rural areas, the 20% weighted trimmed mean core inflation increased to 11.0% year-on-year in June 2024, up from 10.6% in May 2024 and lower than the 29.9% recorded in June 2023. Month-on-month, trimmed mean core inflation increased by 0.5% in June 2024, recovering from a 0.9% decrease in May 2024 and a 0.1% increase in June 2023.
