Pakistan’s annual inflation rises to 9.2% in Oct. 2021 as global commodity prices spike

KARACHI: Pakistan’s annual inflation rate rose to 9.2 percent in October, up from 9 percent in previous months, the statistics bureau said on Monday as the country’s prime minister called for measures to bring down the prices of essential commodities and provide relief to the public.
The general inflation measured by the Consumer Price Index (CPI) increased by 9.2 percent on a year-on-year (YoY) basis in October 2021 as compared to an increase of 9 percent in the previous month and 8.9 percent in October 2020, according to Federal Bureau of Statistics (FBS) data.
The South Asian nation is facing inflationary pressure amid rising prices of commodities in the international market, including petroleum products, analysts say, as Pakistan prime minister Imran Khan on Monday said his government was working hard to reduce the impact of inflation. 
“We are working hard to mitigate negative impacts of international inflation, especially in petroleum products and food items,” Khan was quoted as saying in a statement issued by the Prime Minister’s office. “Stabilizing macroeconomic indicators in the country is the government’s top priority to spur economic growth.”
The PM has also directed authorities to take necessary measures to bring down the prices of essential commodities, the statement said. 
For urban residents, according to official statistics, inflation rose by 9.6 percent on a year-on-year basis in October 2021 as compared to an increase of 9.1 percent in the previous month and 7.3 percent in October 2020. 
However, inflation for rural dwellers of the country witnessed a slight surge, going up by 8.7 percent on a year-on-year basis in October 2021 as compared to an increase of 8.8 percent in the previous month and 11.3 percent in October 2020. 
In October 2021, the South Asian country witnessed a 71.03 percent hike in the price of Liquefied Hydrocarbons for urban residents while electricity charges rose by 32.14 percent in the non-food basket. 
The prices of vegetable and ghee surged by 43.03 percent, cooking oil by 40.02 percent and chicken by 34.69 percent. 
Analysts say the country is facing inflationary pressure due to high commodity prices in the international market. 
“Inflation is higher due to increase in petroleum prices on the back of rising global oil prices. It has fed into both the transportation and housing groups,” Samiullah Tariq, Director Research at Pakistan Kuwait Investment, said. 
“Inflation is expected to go up in the coming months as global food and energy prices are still on the higher side,” said Khurram Schehzad, CEO of Alpha Beta Core, a financial advisory platform.