KARACHI: The Consumer Price Index (CPI) inflation general increased by 4.2 percent on year-on-year basis in May 2018 as compared to an increase of 3.7 percent in the previous month and 5.0 percent in May 2017.
On month-on-month basis, it increased by 0.5 percent in May 2018 as compared to an increase of 1.8 percent in the previous month and increase of 0.0 percent in May 2017.
Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 7.0 percent on (YoY) basis in May 2018 as compared to an increase of 7.0 percent in the previous month and 5.5 percent in May 2017.
On (MoM) basis, it increased by 0.2 percent in May 2018 as compared to increase of 2.5 percent in previous month, and an increase of 0.2 percent in corresponding month of last year i.e. May 2017.
Core inflation, measured by 20 percent weighted trimmed mean CPI (Core Trimmed) increased by 5.1 percent on (YoY) basis in May 2018 as compared to 5.0 percent in the previous month and by 4.8 percent in May 2017.
On (MoM) basis, it increased by 0.3 percent in May 2018 as compared to an increase of 1.6 percent in the previous month and an increase of 0.2 percent in corresponding month of last year i.e. May 2017.
The State Bank of Pakistan (SBP) said the headline CPI inflation remains moderate in FY18, mainly owing to low food inflation. Indeed, the average food inflation, clocked in 1.8 percent during Jul-Apr FY18, whereas the year-on-year food inflation was close to zero in March and April 2018. This has been possible due to adequate stocks of wheat and sugar along with smooth supply of perishables. Contrary to this, average of YoY NFNE-core inflation during the last two months has risen to 6.4 percent, which reflects the building up of inflationary pressures in the economy.
A significant change in the outlook for international oil prices with its impact on upward adjustments in domestic oil prices, a strong demand, the lagged pass-through of exchange rate adjustments, food inflation maintaining its current course and the stoking of survey-based measures of inflationary expectations will largely determine the inflation path in the remaining period of FY18 and for FY19, the central bank added.
Sensitive Price Index (SPI) inflation on YoY increased by 0.5 percent in May 2018 as compared to a decrease of 0.5 percent a month earlier and an increase of 2.4 percent in May 2017.
Wholesale Price Index (WPI) inflation on YoY basis increased by 5.6 percent in May 2018 as compared to an increase of 4.0 percent a month earlier and an increase of 5.2 percent in May 2017. WPI inflation on MoM basis increased by 1.3 percent in May 2018 as compared to an increase of 1.3 a month earlier and a decrease of 0.2 percent in corresponding month of last year i.e. May 2017.
Published in Daily Times, June 2nd 2018.
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