Inflation is Declining in Pakistan With the announcement of SPI on Friday and CPI data on Monday, May 31, 2021, the inflation scenario has significantly improved. The CPI, during the month of May, came to 10.9pc compared to 11.2pc a month earlier, which is a clear sign of easing in inflationary pressures.
According to the statement issued by the Ministry of Finance on Wednesday, this assertion is strengthened by two further developments. One, the month-on-month inflation dropped to only 0.1pc compared to 1pc in April. Two, the average inflation for 11 months (July-May) has come down to 8.8pc compared to double-digit inflation on 10.9pc.
It is also important to underline that food inflation has also started to decline. In urban areas, month-on-month food inflation come down from 2.7pc in April to 1.1pc in May. Similarly, in rural areas, food inflation dropped from average of 14.1pc in April to 12.8pc in May. Similar, trends are also witnessed in core-inflation.
Both in rural and urban areas, year-on-year core-inflation declined from 7pc to 6.8pc and from 7.7pc to 7.6pc respectively. Going forward, we expect inflationary pressure to further abate in view of good crops, improved supply conditions, and vigilant monitoring of price movements in the markets