Islamabad: Pakistan's inflation rate declined marginally to 12.63 percent in December compared to 12.7 percent in the previous month, but it is still at its highest level in 9 years.
According to the report, the Pakistan Department of Statistics (PBS) report said inflation detected by the Consumer Price Index (CPI) declined 0.34% over the previous month.
Data released in this regard shows that food inflation remains the most significant contributor to the overall increase in December, while it was also seen that food prices are higher in rural areas than in urban areas.
Annual food inflation in urban areas increased by 16.7 per cent in December, but on a monthly basis, it decreased by 1.7 per cent, while in rural areas it increased by 19.7 per cent and by 1.1 per cent, respectively.
In urban areas, the prices of food items increased by 6.35%, wheat 5.62%, eggs 4.61%, fresh fruits 2.3%, lentils 1.88% and fish (1.22%).
On the contrary, the prices of the commodities in urban areas were tomatoes 36.49%, onions 12.45%, chicken 11.21%, fresh vegetables 4.62%, sugar 3.54% and tomatoes 1.96%.
Similarly, inflation in urban centres was recorded at 9.5 per cent on an annual basis, and in rural areas, it was 8.8 per cent.
The main reason for the rise in non-nutritional inflation is the combined effect of the increase in oil prices and the reduction of exchange rates over the past few months, while the government approved the increase for local consumers.
It should be noted that for the current financial year, the International Monetary Fund (IMF) estimates that the country's inflation can go up to 13 percent. Still, the government estimates that it will remain within 11 to 13 percent.
It is to be noted that in the urban CPI, 35 cities and 356 consumer goods are seen, while rural CPI comprises 27 rural centres and 244 products.