The Pakistan Bureau of Statistics (PBS) said on Friday that the August amount was slightly lower than the July reading of 28.3%. It was 1.7% higher month over month.
This raises the average inflation rate for 2MFY24 to 27.85%, up from 26.10% in 2MFY23.
The August Consumer Price Index number is also the lowest in calendar year 2023.
Experts anticipate the reading will rise in the following months as the rupee’s depreciation, rising energy bills and record-high fuel prices eat into consumers’ wallets.
The caretaker administration raised fuel and diesel prices again on Friday, to Rs305.36 and Rs311.84 per litre, respectively.
Since the beginning of August, the price of petrol has risen by approximately 21%, or Rs52.36.
On September 14, the State Bank of Pakistan (SBP) will host its Monetary Policy Committee (MPC) meeting to deliberate on the key policy rate, which is currently at a record 22%. The statement is expected to include a rate hike, according to most analysts.
Urban, rural inflation
According to the PBS, CPI inflation in Urban reached to 25.0% year on year in August 2023, up from 26.3% the previous month and 26.2% in August 2022.
Month on month, it increased to 1.6% in August 2023, compared to 3.6% the previous month and 2.6% in August 2022.
CPI inflation in rural areas grew to 30.9% year on year in August 2023, up from 31.3% the previous month and 28.8% in August 2022. Month on month, it increased to 1.9% in August 2023, compared to 3.3% the previous month and 2.2% in August 2022.