CPI-based inflation quickens to 29.7pc in December

Headline inflation accelerated for the second consecutive month in December, rising to 29.7 per cent year-on-year from 29.2pc in the previous month, primarily due to soaring prices of essential kitchen items and electricity rates. In December, power rates saw a 15.76pc increase, LPG rose by 2.62pc, and the 520pc spike in gas prices in November further contributed to inflation. Vegetables such as tomatoes, onions, and potatoes experienced an increase from the previous month. The first-half inflation for FY24 was recorded at 28.79pc, compared to 25.02pc during the corresponding period last year. This inflation rate exceeds the government’s projection of 21pc. The IMF has also forecast the average inflation for FY24 at 25.9pc, a significant easing from the previous year’s 29.6pc. The month-on-month inflation rose 0.8pc, Pakistan Bureau of Statistics reported on Monday. The inflation rate was recorded at 24.5pc in December 2022.