Inflation in Pakistan slowed to 10.3% in September, according to recent data. The overall annual inflation rate stood at 10.3%. Furthermore, energy-group prices showed an increase when compared to the same time last year. Monthly inflation rose to 1.3%. In urban areas, inflation reached 10.1%, while rural areas recorded 10.5%. Food inflation saw a reduction in urban areas, falling from 12.1% to 8.1%. Meanwhile, in rural areas, food inflation decreased to 7.7%.
Energy group pace accelerated, reaching 11.5% in urban areas and 13.1% in rural areas. Regarding commodity costs, petrol prices were 39% higher in September compared with a year ago. The price of petrol stood at Rs389.4 for Thursday. High-speed diesel cost Rs400. Moreover, the cost of transport services increased by 30% last month over a year ago. Electricity prices were 33% higher in September over a year ago. Motor vehicle taxes jumped by 39% over a year ago. Onion prices showed a significant jump of 125% in September on a yearly basis. Wheat prices increased by 41%. The government is importing 765,000 tonnes of wheat. Wheat flour prices were higher by 32% compared to a year ago. Conversely, prices for potatoes, chicken, eggs, and sugar dropped by 20% to 30% last month.
Pakistan informed the IMF that the inflation rate would remain below 8.2%. The IMF urged Pakistan to adjust exchange rate and interest rate policies. Federal and central bank authorities viewed policies as appropriate. The central bank kept the policy rate unchanged at 11.5%. Core inflation ranged between 8.1% and 8.6%. Official projections suggest the average inflation for the current fiscal year will fall between 7% and 8%. Pakistan also stated that if Brent crude price stabilizes at $80 per barrel this fiscal year, inflation will remain at 7.5%. However, if oil price remains at $100 per barrel until December, projected inflation might rise to 8.2% for the fiscal year.
