Business

Inflation dwindles to 5.65pc in January

Islamabad: The Consumer Price Index (CPI) based monthly inflation eased to 5.65 percent on year-on-year (YoY) basis during the month of January 2021. According to the data shared by Pakistan Bureau of Statistics (PBS), the CPI for the month of December 2020 was recorded at 8 percent.

Published

3 years ago

Feb 02, 2021 05:23 AM

Web Desk

GNN Media: Representational Photo

A decrease in the prices of vegetables, pulses, eggs, spices and chicken helped bring down the consumer price index, the bureau said.

On month-on-month (MoM) basis, inflation decreased by 0.2 percent in January as compared to a decrease of 0.7 percent in December 2020 and an increase of 2 percent in January 2019.

The data showed that the urban CPI based inflation increased by 5.0 percent on year-on-year basis in January 2021 as compared to an increase of 7.0 percent in the previous month and 13.4 percent in January 2020. On month-on-month basis, it decreased by 0.2 percent in January 2021 as compared to a decrease of 0.3 percent in the previous month and an increase of 1.7 percent in January 2020.

Further, data also showed that the rural CPI increased by 6.6 percent on year-on-year basis in January 2021 as compared to an increase of 9.5 percent in the previous month and 16.3 percent in January 2020. On month-on-month basis, it decreased by 0.3 percent in January 2021 as compared to a decrease of 1.2 percent in the previous month and an increase of 2.4 percent in January 2020.

Moreover, the Sensitive Price Indicator (SPI) inflation on YoY increased by 7.7 percent in January 2021 as compared to an increase of 9.1 percent a month earlier and an increase of 18.3 percent in January 2020. On MoM basis, it decreased by 0.8 percent in January 2021 as compared to a decrease of 2.7 percent a month earlier and an increase of 0.5 percent in January 2020.

Previously, Prime Minister Imran Khan shared "more good news on the economic front" with the nation, referring to the declining of core inflation and the consumer price index (CPI). The premier took to Twitter to proclaim that the government's efforts to bring down inflation were bearing fruit. "More good news on the economic front. Our efforts to reduce inflation are now showing results. Consumer price index & core inflation are both now lower than when our government was formed," he said.

More good news on the economic front. Our efforts to reduce inflation are now showing results. Consumer price index & core inflation are both now lower than when our government was formed. I have told my economic team to stay vigilant & ensure that inflation stays under control.
— Imran Khan (@ImranKhanPTI) January 31, 2021