January Inflation increased to 4-Years high at 7.2%

0
28

Inflation reading for the month of Jan’19 came out at 7.2%, corresponding to a MoM inflation of 0.54% during the said period. This is the highest Inflation recorded in last 4 years period. Inflation has been on the rise since last one year on the back of rising commodities prices and currency devaluation

The inflation during 7MFY19 has averaged at 6.2% as opposed to 3.9% recorded in the corresponding period last year. Energy and housing category remained key factors in CPI uptick in the outgoing month on the back of revision in House Rent Index as well as increase in electricity tariff index. Electricity Index, which has 4.4% weightage in the CPI basket, increased by 12%YoY owing to revision in tariffs. Transportation also contributed in the rise in inflation as it increased by 15%YoY owing to higher levels of petroleum prices

Core Inflation on the rise

Core Inflation for the month of January 2019 stood tat 8.7% highest in preceding years. Core inflation has been on the rise owing to general rise in Price Indices across the commodities. SBP Governor in his Press Conference highlighted that excessive Government Borrowing and lagged impact of Currency devaluation is expected to keep inflation at higher levels

LEAVE A REPLY

Please enter your comment!
Please enter your name here