Pakistan’s annual inflation rate increased to 11.63 percent in August of 2019 from 10.34 percent in the previous month. It was the highest inflation rate since May of 2012, as prices advanced faster for food & non-alcoholic beverages (10.68 pct vs 7.88 pct in July); transport (15.26 pct vs 14.67 pct); clothing & footwear (8.51 pct vs 7.40 pct); furniture & household equipment (10.66 pct vs 10.17 pct); education (7.05 pct vs 6.91 pct); miscellaneous goods & services (14.42 pct vs 11.57 pct); communication (8.98 pct vs 8.81 pct), and alcoholic beverages & tobacco (36.82 pct vs 35.75 pct). On the other hand, cost slowed for housing & utilities (12.70 pct vs 12.74 pct); health (8.89 pct vs 8.97 pct). On a monthly basis, consumer prices increased 1.38 percent, after rising 2.29 percent in July. Pakistan has changed the base year for price statistics from 2007-08 to 2015-16. In the new base year (2015-16), annual inflation came in at 10.49 percent in August. Inflation Rate in Pakistan averaged 7.77 percent from 1957 until 2019, reaching an all time high of 37.81 percent in December of 1973 and a record low of -10.32 percent in February of 1959.
Inflation Rate in Pakistan is expected to be 8.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Pakistan to stand at 5.00 in 12 months time. In the long-term, the Pakistan Inflation Rate is projected to trend around 6.00 percent in 2020, according to our econometric models.