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Pakistan’s consumer price index (CPI) for August was recorded at 27.3 percent—the highest in over 40 years per many economists—year-on-year, according to the Pakistan Bureau of Statistics (PBS), as the country prepares for even further pressure due to food crops destroyed by ongoing flooding.
In July, the annual CPI was recorded at 24.9 percent. Per the PBS, last month’s surge was largely linked to price hikes in essential food items, including vegetables, wheat and cooking oil, which accounted for 34.58 percent of the total basket. The second highest contributor, 23.63 percent, was housing, water, electricity, gas and fuels—all posting massive price hikes in recent week, with electricity consumption especially coming under intense pressure due to currency devaluation and hefty petroleum costs.
The monthly PBS report said the monthly CPI had increased by 2.4 percent from July to August, a minor change from the 4.3 percent increased that had been witnessed between June and July.
In terms of the highest price increases over the past year, the PBS listed the following commodities:
- Pulse Masoor (118.64%)
- Onions (96.7%)
- Gram Whole (88.82%)
- Cooking Oil (69.61%)
- Mustard Oil (69.19%)
- Vegetable Ghee (68.67%)
- Pulse Gram (65.65%)
- Chicken (63.26%)
- Pulse Mash (52.38%)
- Besan (48.54%)
- Vegetables (41.61%)
- Wheat (39.80%)
- Rice (35.29%)
- Eggs (34.54%)
- Tomatoes (29.72%)
- Beans (29.56%)
- Meat (26.08%)
- Fruits (24.41%)
- Electricity charges (123.37%)
- Motor fuels (87.34%)
- Liquefied Hydrocarbons (43.92%)
- Construction input items (35.44%)
- Cleaning and Laundering (30.49%)
- Motor vehicles accessories (28.8%)
- Washing soaps/detergents/match boxes (28.23%)
- Stationery (27.23%)
- Solid fuel (22.25%)
- Hosiery (22.15%)
Worryingly, authorities have already warned of more inflation to come, as nationwide floods have inundated over 2 million acres of agricultural land, resulting in food shortages. The looming food insecurity has already prompted the government to announce it is allowing imports of food items from Iran and Afghanistan. Finance Minister Miftah Ismail has also said the government is considering reopening trade with India, but stressed this decision would be taken by all parties comprising the ruling coalition.