Last month, the inflation rate sharply dropped to a nearly two-and-a-half-year low of 11.8% due to a decline in food prices and some adjustments in fuel rates.
According to the Pakistan Bureau of Statistics (PBS) report on Monday, the Consumer Price Index (CPI)-measured headline inflation rate stood at 11.8% in May compared to the same month a year ago.
In addition to the high base effect, the actual decrease in the prices of food items played a significant role in lowering the inflation rate to a level that even government officials and independent economists hadn’t predicted.
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In May, prices decreased compared to April, with the index dropping by 3.2%, as reported by the Pakistan Bureau of Statistics (PBS).
The 11.8% rate recorded in May marked the lowest since November 2021, when the reading had been 11.5%. Just four days prior, the Ministry of Finance had revised its inflation forecast for May to 14.5%, while the Planning Commission projected slightly over a 13% inflation rate.
In a rare occurrence, the prices of various goods actually decreased in May compared to a year ago. Last month, the average price of a 20-kilogram bag of wheat flour decreased by Rs789 to Rs1907.
Moreover, chicken prices decreased by one-fifth to Rs347 per kilogram, while egg prices dropped by 10%. Cooking oil rates also saw a significant reduction, decreasing by Rs647 or 20% to Rs2652.
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