Monday, August 10, 2020

Pakistan: CPI expected at 9.32% YoY in Jun’19, Policy Rate to Increase by 100 bps

Featured

United Nations: Floods affect 38 million people in China and 1.4 million in Bangladesh

Stephen Dujarric, a spokesman for the United Nations Secretary-General, said that the floods are still affecting many countries in...

Biden says his economic plan will create 5 million US jobs

US Democratic presidential candidate Joe Biden on Thursday pledged to spend $700 billion on US-made products and industrial research,...

Brazil President Bolsonaro tested positive for coronavirus

Brazilian newspaper "Atardi" confirmed that Brazilian President Jair Bolsonaro underwent a fourth test for Coronavirus after he showed some...
Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

Analysts expect Jun’19 Consumer price index (CPI) inflation to settle at 9.32% YoY compared to 5.21% in Jun’18 and 9.11% in May’19, respectively. The uptick in CPI will be owed to i) increase in price of MoGas by PKR 4.50/liter (augmenting CPI by 18bps), ii) surge in prices of clothing items on account of PKR depreciation, and iii) uptick in prices of food related products specially Wheat Flour, Potatoes, Fresh Vegetables, and Sugar. This will take the FY19 average inflation to 7.36% compared to 3.92% in SPLY. On a yearly basis, increase in inflation will likely be led by Transport (+17.0% YoY), Alcoholic Beverages & Tobacco (+14.0% YoY), Housing (+10.0% YoY), and Food (+8.6% YoY).

Monthly Inflation to settle at 0.76%

On a MoM basis, Consumer price index (CPI) reading is expected to increase by 0.76% attributable to surge in Transport Index (+3.14% MoM), Clothing & Footwear Index (+1.38% MoM), and Food index (+0.96% MoM). As per three weeks Sensitive Price Index (SPI) data published by the Pakistan Bureau of Statistics (PBS), average prices of Potatoes, Pulse Moong, Gur, Wheat Flour, Sugar, and Fresh Vegetables are expected to register a jump of 22%, 7%, 7%, 5%, 5% and 4% MoM, respectively. On the other hand, decline in prices of essential food items like Tomatoes (-13% MoM), Chicken (-10% MoM) and Onions (-9% MoM) is expected to keep the food index restrained.

Read also: Pakistan: MPS announced, policy rate up by 150 bps to 12.25 percent

Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com He can be reached at: [email protected]

Latest News

No Electrocutions Due To Ke Infrastructure

In a statement issued in local press, K-Electric expressed grief over the electrocution incidents reported through local media from...

United Nations: Floods affect 38 million people in China and 1.4 million in Bangladesh

Stephen Dujarric, a spokesman for the United Nations Secretary-General, said that the floods are still affecting many countries in the Asian continent and caused...

G20 finance officials pledge to agree on digital services taxes this year

Financial officials in the Group of Twenty countries said today, that they are still committed to resolving disputes over digital services taxes and reaching...

Erdogan’s party postpones the legal holiday to pass a law imposing restrictions on social media

The ruling Justice and Development Party in Turkey, which is led by President Recep Tayyip Erdogan, is heading to postpone the legal holiday with...

Biden says his economic plan will create 5 million US jobs

US Democratic presidential candidate Joe Biden on Thursday pledged to spend $700 billion on US-made products and industrial research, which he said would create...

Related News