April 01 (E.A Report)–Pakistan’s Consumer Price Index (CPI)-based inflation clocked in at 35.4% on a year-on-year basis in March 2023 as against to an increase of 31.5% of February and 12.7% in March 2022. On a month-on-month basis, it increased to 3.7%, Pakistan Bureau of Statistics (PBS) data released on Saturday shows.
Data showed highest year-on-year inflation since the available data i.e. July 1965,” which takes 9MFY23 average inflation to 27.3% compared to 10.8% in 9MFY22.
The transport group witnessed an increase of 55% YoY.
As per PBS data, the food group, commands a significant weight of 34.58% in the inflation reading, remained the major driver behind the increase. It increased from 170.06 in March 2022 to 250.25 in March 2023, a jump of over 47%.
“Going forward, inflation is expected to stay in this range at least for the next two months,” Researchers told Economic Affairs. “It will recede from June onwards due to high base effect,” added the analysts.
The market expert said that the significant spike in food inflation was led by an increase in wheat prices. “Moreover, the Ramadan factor also contributed to hiking fruit prices,” they added.
“Meanwhile, the transportation index was driven by a significant hike in auto rates in March, alongside, an increase in the POL prices,” the analysts said.
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