Inflation has been a pressing concern in Pakistan, with the latest data from the Bureau of Statistics shedding light on key trends from July to December 2024. The inflation rate during this period was recorded at 7.22 percent, with 4.4 percent in urban areas and 3.6 percent in rural regions, showcasing regional variations in price increases.
Price Hikes in Essential Commodities
Over the past year, several essential items witnessed significant price hikes. According to statistics:
- Gram dal became 54.25% more expensive.
- Gram flour surged by 52.15%.
- Tomatoes rose by 44.71%.
- Potatoes saw a 37.03% increase.
- Moong dal prices climbed by 34.50%.
- Fish prices increased by 25.47%.
- Meat prices went up by 21.38%.
These increases have had a profound impact on household budgets, particularly for lower-income families who rely heavily on these staples.
Consumer Price Index (CPI) Insights
The Consumer Price Index (CPI) reflects the overall inflationary trend in the economy.
- In December 2024, the CPI stood at 4.2%, compared to 7.3% in November and a staggering 35.3% in December 2023.
- The wholesale price index followed a similar downward trajectory, recorded at 1.9% in December, down from 2.3% in November and 27.3% in December last year.
Core Inflation Trends
Core inflation, which excludes food and energy prices, showed mixed trends across urban and rural areas:
- Urban areas: Non-food, non-energy core inflation was 8.1% in December, down from 8.9% in November and 18.2% in December 2023.
- Rural areas: Core inflation was 10.7% in December, compared to 7.5% in November and 25.1% in December last year.
Monthly Price Decreases
December brought some relief to consumers, with prices of certain items showing a downward trend:
- Chicken prices fell by 13.06%.
- Gram dal dropped by 6.94%.
- Onions decreased by 4.91%.
- Tomatoes saw a 3.28% decline.
- Spices reduced by 2.60%.
- Dal mash prices dropped by 2.59%.
- Gram flour fell by 2.55%.
- Fresh vegetables decreased by 2.27%.
- Flour prices reduced by 0.99%, and rice fell by 0.50%.
Additionally, electricity prices decreased by 5.68%, and construction material prices dropped slightly by 0.06%.
Monthly Price Increases
Despite the overall decline in inflation, some items experienced price hikes in December:
- Potatoes rose by 12.42%.
- Fresh fruits increased by 8.84%.
- Ghee prices went up by 5.42%.
- Cooking oil climbed by 4.39%.
- Mustard oil saw a 2.96% rise.
- Honey increased by 2.69%, while sugar rose by 2%.
Other items like fish, eggs, meat, beans, dry fruits, beverages, and dairy products also recorded marginal price increases.
Implications of Inflation Trends
The data highlights a complex picture of Pakistan’s inflation dynamics. While the CPI and wholesale price index indicate a decline in inflationary pressures compared to the previous year, the significant annual price hikes in essential commodities remain a cause for concern.
The mixed trends in core inflation suggest that urban areas may be benefiting from slightly better economic conditions compared to rural regions, where core inflation remains higher. This disparity underscores the need for targeted policy measures to address regional inflation differences.
Relief Measures and Future Outlook
The government and relevant authorities must take proactive steps to stabilize prices, especially for essential food items that affect the majority of the population. Subsidies on basic commodities, stricter regulation of supply chains, and efforts to boost local production can help mitigate the impact of inflation on consumers.
As the fiscal year progresses, policymakers will need to balance inflation control with measures to stimulate economic growth. Ensuring food security and affordability for vulnerable populations should remain a top priority.
