inflation in the month of February fell to 12.4 % from 14.6 %

inflation in the month of February fell to 12.4 % from 14.6 %

Posted on Mar 3, 2020

According to the Pakistan Institute of Statistics (PBS), inflation in the month of February fell to 12.4 % from 14.6 % last month, after several measures by the government.

For the first time since July 2019, the Consumer Prize Index (CPI) saw a slowdown in inflation due to the State Bank's stringent monetary policy and other measures, including improving supply and commodity supply.

Prime Minister Imran Khan issued a statement on the social networking site Twitter, saying that inflation is gratifying with the impact of declining cabinet decisions and subsidies on consumer goods through utility stores; We will continue to take steps for this. '

It is worth mentioning here that the prices of goods, especially vegetables and fruits, are higher in rural areas than in urban areas.

The price of LPG cylinder used for cooking in rural areas is the highest since 2013.

In urban areas, food inflation increased by 15.5 % year-on-year, while on a monthly basis it was reduced by 1.4 %, while in rural areas it was 19.7 % and 1.6 % respectively.

It should be clear that inflation in food commodities is higher in rural areas, where most of the population lives in the country which has never been seen before.

One of the reasons is to impose regular duties on vegetables and fruits to discourage their imports from Afghanistan and Iran and to sell locally produced fruits and vegetables at higher prices in the urban markets.

With the arrival of crops especially vegetables in Punjab in March, it is predicted that prices of food and beverages will decline further. Prices for tomatoes, onions, potatoes and other vegetables will be lower in March.

Similarly, inflation in non-food commodities in urban centers was recorded at 9.1 % year-on-year, while on a monthly basis it decreased by 0.9 %.

Non-food inflation in rural areas was 9.8 % year-on-year and 0.4 % on a monthly basis. The slight decline in non-food inflation was mainly due to the drop in oil prices in the last few months.

Non-food inflation will be further reduced by falling oil prices in March. Between July 2019 and February 2020, the average inflation stood at 11.7 %, up from 6 % in the same month last year.


Mian Tajamul

Blog Author

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