Pakistan’s Consumer Price Index (CPI) based inflation rose to 12.6 percent year-on-year (YoY) in June 2024, up from 11.8 percent in May 2024 and significantly lower than 29.4 percent in June 2023. On a month-on-month (MoM) basis, CPI inflation increased by 0.5 percent in June 2024 compared to a decrease of 3.2 percent in the previous month and a decrease of 0.3 percent in June 2023.
Despite these changes, the country missed its inflation target of 21 percent for the fiscal year 2023-24, achieving 23.41 percent against 29.18 percent in the previous fiscal year.
CPI inflation in urban areas increased to 14.9 percent YoY in June 2024, compared to 14.3 percent in May 2024 and 27.3 percent in June 2023. On a MoM basis, it rose by 0.6 percent in June 2024, after a 2.8 percent decrease in May 2024 and a 0.1 percent increase in June 2023.
In rural areas, CPI inflation climbed to 9.3 percent YoY in June 2024, from 8.2 percent in May 2024 and 32.4 percent in June 2023. On a MoM basis, it increased by 0.3 percent in June 2024, following a 3.9 percent decrease in May 2024 and a 0.8 percent decrease in June 2023.
The Sensitive Price Indicator (SPI) inflation rose to 16.6 percent YoY in June 2024, up from 15.3 percent in May 2024 and 34.9 percent in June 2023. On an MoM basis, it increased by 1.33 percent in June 2024, after a 4.0 percent decrease in the previous month and a 0.2 percent increase in June 2023.
Wholesale Price Index (WPI) inflation also saw an increase to 10.6 percent YoY in June 2024, from 9.9 percent in May 2024 and 22.4 percent in June 2023. MoM, it rose by 0.4 percent in June 2024, following a 2.5 percent decrease in May 2024 and a 0.3 percent decrease in June 2023.
Core inflation, measured by non-food non-energy (NFNE) items, showed mixed results. In urban areas, it was 12.2 percent YoY in June 2024, slightly down from 12.3 percent in May 2024 and 18.5 percent in June 2023. On a MoM basis, it increased by 0.6 percent in June 2024, compared to a 0.4 percent increase in May 2024 and a 0.7 percent increase in June 2023.
In rural areas, core inflation remained steady at 17.0 percent YoY in June 2024, the same as in May 2024 but lower than 25.2 percent in June 2023. On a MoM basis, it rose by 0.9 percent in June 2024, following a 0.5 percent increase in May 2024 and a 0.9 percent increase in June 2023.
Core inflation measured by a 20 percent weighted trimmed mean showed a YoY increase in urban areas to 10.3 percent in June 2024, down from 11.0 percent in May 2024 and 22.9 percent in June 2023. On a MoM basis, it increased by 0.6 percent in June 2024, following a 0.5 percent decrease in May 2024 and a 0.8 percent increase in June 2023.
In rural areas, the 20 percent weighted trimmed mean core inflation increased to 11.0 percent YoY in June 2024, from 10.6 percent in May 2024 and 29.9 percent in June 2023. On a MoM basis, it rose by 0.5 percent in June 2024, following a 0.9 percent decrease in May 2024 and a 0.1 percent increase in June 2023.
