March sees 1.71% monthly increase in Pakistan’s inflation rate

DTD-April 1, 2024

2 minutes read

Pakistan’s export of goods and services to China witnessed an increase of 37.68 per cent during the first ten months of the current fiscal year (2023-24) as compared to the exports of the corresponding period of last year, Gwadar Pro reported quoting the State Bank of Pakistan (SBP) on Thursday. The overall exports to China were recorded at $2.341 billion during July-April (2023-24) against the exports of $1.700 billion during July-April (2022-23), SBP data revealed. Meanwhile a new air cargo route has been inaugurated to strengthen trade ties between China, Pakistan. Stop and Shop shuts doors across United States According to China Economic Net (CEN), the route was launched with the departure of an all-cargo plane carrying 6 tonnes of freight, including clothing, electronics, and various commodities, from Guiyang, the capital of Guizhou. After nearly six hours of flight time, the plane arrived in Karachi. It will return to Guiyang loaded with blue crabs from Pakistan, according to Guiyang Customs. This air route is significant as it marks the first direct connection between Guizhou and Pakistan, as well as the first air freight route linking the province with a Belt and Road Initiative (BRI) country.

Inflation in Pakistan continued its upward trajectory, with the annual inflation rate reaching 20.68% in March, as reported by the Bureau of Statistics.

March sees 1.71% monthly increase in Pakistan’s inflation rate. This marks a slight decrease from the 23.1% recorded in February. However, on a monthly basis, inflation saw a 1.71% increase in March compared to February 2024.

Interestingly, there was no change in inflation from the previous month, although March 2023 witnessed a 3.7% inflation rate.

The Bureau of Statistics highlighted that the average inflation rate from July to March stood at 27.06%. Urban areas experienced a 1.43% increase in inflation, while rural areas saw a higher increase of 2.13% in March.

Core inflation, which excludes food and energy prices, rose to 12.8% in urban areas and 20% in rural areas on a year-on-year basis in March. This indicates a slight decrease from the previous month’s figures, which were recorded at 15.5% and 21.9%, respectively.

The rise in core inflation underscores the challenges faced by both urban and rural populations, reflecting broader economic concerns beyond food and energy sectors.

According to the data, CPI inflation Urban, increased to 21.9% on year-on-year basis in March 2024 as compared to an increase of 24.9% in the previous month and 33.0% in March 2023. On month-on-month basis, it increased to 1.4% in March 2024 as compared to an increase of 0.2% in the previous month and an increase of 3.9% in March 2023.

CPI inflation Rural, increased to 19.0% on year-on-year basis in March 2024 as compared to an increase of 20.5% in the previous month and 38.9% in March 2023. On month-on-month basis, it increased to 2.1% in March 2024 as compared to a decrease of 0.3% in the previous month and an increase of 3.5% in March 2023.

The Sensitive Price Indicator (SPI) inflation on YoY increased to 25.9% in March 2024 as compared to an increase of 30.4% a month earlier and 40.4% in March 2023. On MoM basis, it increased by 2.1% in March 2024 as compared to a decrease of 0.8% a month earlier and an increase of 5.8% in March 2023.

The Wholesale Price Index (WPI) inflation on YoY basis increased to 14.8% in March 2024 as compared to an increase of 18.7% a month earlier and an increase of 37.5% in March 2023. On MoM basis, it increased by 1.3% in March 2024 as compare to an increase of 1.1% in the previous month and an increase of 4.7% in corresponding month of last year i.e. March 2023.