CPI inflation decelerates to 5.7% on YoY basis

The Consumer Price Index (CPI) based monthly inflation decelerated to 5.7 percent on year-on-year (YoY) basis during the month of January 2021, from 8 percent during December 2020, Pakistan Bureau of Statistics (PBS) reported.

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

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

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

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

Likewise, the Wholesale Price Index (WPI) on YoY basis increased by 6.4% in January 2021 as compared to an increase of 5.7% a month earlier and an increase of 15.4% in January 2020. WPI inflation on MoM basis increased by 2.5% in January 2021 as compared to an increase of 0.3% a month earlier and an increase of 1.8% in corresponding month i.e. January 2020.

The urban core inflation, measured by non-food non-energy increased by 5.4% on (YoY) basis in January, 2021 as compared to an increase of 5.6% in the previous month and 7.9% in January, 2020. On (MoM) basis, it increased by 0.9% in January, 2021 as compared to increase of 0.4% in previous month, and an increase of 1.1% in corresponding month of last year i.e. January, 2020.

On the other hand, the rural core inflation, measures by non-food non-energy Rural increased by 7.8% on (YoY) basis in January, 2021 as compared to an increase of 7.7% in the previous month and 9.0% in January, 2020. On (MoM) basis, it increased by 1.1% in January, 2021 as compared to an increase of 0.5%

The urban trimmed core inflation, measured by 20% weighted trimmed mean, increased by 5.7% on (YoY) basis in January, 2021 as compared to 6.2% in the previous month and by 10.3% in January, 2020. On (MoM) basis, it increased by 1.0% in January, 2021 as compared to an increase of 0.4% in the previous month and an increase of 1.2% in corresponding month of last year i.e. January, 2020.

The rural trimmed core inflation, measured by 20% weighted trimmed mean, increased by 8.1% on (YoY) basis in January, 2021 as compared to 8.8% in the previous month and by 12.7% in January, 2020. On (MoM) basis, it increased by 1.2% in January, 2021 as compared to an increase of 0.6% in the previous month and an increase of 1.9% in corresponding month of last year i.e. January, 2020.