Pakistan’s March 2024 Inflation Rate Decreases to 20.7% Year-on-Year

New data released by the Pakistan Bureau of Statistics (PBS) brings good news regarding inflation for March 2024. The National Consumer Price Index (CPI) shows that the inflation rate was 1.7% higher compared to the previous month and 20.7% higher compared to the same time last year.

This is a significant improvement from last year’s numbers, where inflation was much higher at 3.7% month-on-month and 35.4% year-on-year. In cities, prices rose by 1.4% compared to the previous month and 21.9% compared to last year, while in rural areas, prices increased by 2.1% month-on-month and 19.0% year-on-year.

The main reason for the increase in prices is food and non-alcoholic beverages, which make up a big part of what people spend money on. Prices for things like tomatoes, onions, potatoes, and fresh fruits and vegetables went up by 1.1% compared to last month. However, prices for other food items went down slightly, which helped balance things out.

Another reason for the increase in prices is housing, water, electricity, gas, and fuel. Electricity prices went up by 0.3% because of higher fuel costs.

When we look at prices without food and energy, the increase is much smaller. In cities, these prices went up by 0.1% compared to last month and 12.8% compared to last year, while in rural areas, they went up by 0.8% compared to last month and 20.0% compared to last year.

Overall, the average inflation rate for the first nine months of the fiscal year is 27.1% compared to 27.3% last year. While this is still high, it’s good to see that prices are not increasing as quickly as before.

This news is important because it affects everyone’s daily lives. As prices go up, it becomes harder for people to afford the things they need. By keeping an eye on inflation rates, we can better understand how the economy is doing and what changes might be needed to help everyone.