Pakistan Inflation Rate Slows Further in August


Pakistan annual inflation rate decelerated for the fourth consecutive month to 7.0 percent in August of 2014, from 7.9 percent recorded in July and 8.6 a year earlier, mostly due to lower cost of food. It is the lowest inflation rate since June of 2013.

Annual prices decelerated in August of 2014 for most of categories: food and non-alcoholic beverages (4.65 percent from 6.20 percent in July); clothing and footwear (9.26 percent from 10.03 percent); housing, water, electricity, gas and fuels (8.92 percent from 8.94 percent); furnishing and household equipment (8.73 percent from 9.18 percent); health (6.84 percent from 7.40 percent); transport (4.23 percent from 5.06 percent); communication (0.14 percent from 0.18 percent); recreation and culture (4.27 percent from 5.76 percent); education (15.31 percent from 16.49 percent); restaurants and hotels (10.88 percent from 11.86 percent); miscellaneous goods and services (7.13 percent from 8.00 percent).

Year-on-year core inflation (excluding food and energy) increased by 7.9 percent in August of 2014 as compared to 8.3 percent in July and 8.5 percent in the same month of 2013. 

On a monthly basis, the inflation rate decelerated to 0.3 percent in August of 2014, compared to 1.7 percent in the previous month. Food prices rose 0.59 percent in August of 2014 mostly due to inflationary pressures of eggs (19.48 percent); fresh vegetables (12.55 percent); onions (8.93 percent); pulse mash (4.40 percent); wheat flour (3.51 percent); potatoes (3.13 percent); wheat (2.88 percent); sugar (2.02 percent); honey (1.41 percent); chicken (1.19 percent); gur (1.15 percent); tomatoes (1.13 percent); meat (1.03 percent); and wheat product (1.02 percent).

Pakistan Bureau of Statistics | Isabel Felino | isabel.felino@tradingeconomics.com
9/1/2014 11:24:49 AM