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ISLAMABAD: An upward swing in consumer prices continued in December as inflation edged up to 12.3 per cent from 11.5pc, the highest increase noted in the past 21 months, according to Pakistan Bureau of Statistics (PBS) data.
Inflation, measured by the Consumer Price Index (CPI), increased to its highest level in 21 months — the period when global oil prices kept rising steadily undermining earlier gains. It may be noted that the recent rise in oil price prices was the highest ever in the country’s history.
The year-on-year increase in inflation in recent months is mainly driven by soaring prices of fuel, electricity, house rent, transport and non-perishable food items.
Food inflation is still on the higher side; in urban areas it has shot up to at 11.7pc in December on a yearly basis and a decline of 2.3pc on a monthly basis, whereas the respective growth in prices in rural areas was 9pc and a decline of 3.1pc.
Non-food inflation in urban centres increased by 13.4pc year-on-year and 2pc on a month-on-month basis, whereas in rural areas it rose by 14pc and 1.9pc, respectively. The increase in non-food inflation was mainly driven by a hefty rise in oil prices in December.
The average inflation between July and December 2021 rose to 9.81pc on a yearly basis. After surging to 12.4pc in February 2020, inflation had been on the decline – helped by a drop in prices of agricultural products.
However, the massive spike in oil prices earlier this year has reversed this trend. In 2020-21, annual CPI inflation was recorded at 8.90pc against 10.74pc the previous year.
A massive depreciation of the rupee has also fuelled import-led inflation. At the same time, prices of meat, fruits and vegetables have also registered a persistent increase in major urban and rural centres.
Food items that saw an increase in their prices in December as compared to the previous month, included cooking oil 6.02pc, fruits 4.81pc, gram whole 4.71pc, gram flour 3.17pc, milk 2.83pc, mustard oil 2.71pc, vegetable ghee 1.79pc, fish 1.54pc, rice 0.90pc, while among pulses masoor increased by 8.64pc, mash 6.58pc and pulse moong 2.75pc.
