higher food inflation the major factor
Karachi, April 2, 2019: Headline inflation in Pakistan, during PTI tenure, has increased to 9.41 percent YoY in March-2019, the highest number since Nov-2013, when PML-N was ruling party in Pakistan.
On MoM basis, CPI increased by 1.42 percent.
Refreshingly, core inflation (non-food, non-energy) eased slightly to 8.5 percent YoY, compared to 8.8 percent YoY in Feb-2019.
Accord to JS research, the growth of 1.42 percent MoM in CPI was primarily attributable to 3.16 percent increase in food pretense during the month, likely due to lagged impact of rupee depreciation and the surge in food prices.
During Nine months (July to March) of this fiscal year, CPI averaged 6.79 percent YoY, i.e. within SBP’s forecasted range for FY19. Analysts expect that CPI for FY19 to average close to 7.3 percent YoY.