Pakistan’s annual inflation rate decreased to 11.1 percent in June, down from 11.7 percent in May, while prices fell by 0.3 percent on a month-to-month basis, data released by the Pakistan Bureau of Statistics (PBS) on Wednesday.
Despite this slight slowdown, inflation remained high, with price movements varying significantly across different categories. Food staples such as tomatoes, onions, and flour saw considerable price increases, whereas consumers experienced relief from reduced costs of chicken, eggs, and petroleum products.
Examining urban and rural inflation, the PBS reported that annual inflation in urban areas was 11.2 percent, with prices dropping 0.5 percent compared to the previous month. In rural regions, inflation stood at 10.9 percent year-on-year.
The Sensitive Price Indicator (SPI), which monitors essential commodity prices, recorded a 12.8 percent rise compared to the same period last year.
On a monthly basis, tomato prices surged by 90 percent, onions increased by 21 percent, and potatoes climbed 18 percent. Fresh vegetable prices rose by 12.5 percent, while flour and ghee became 2.2 percent and 1.9 percent more expensive, respectively.
Conversely, chicken prices dropped by 22 percent during the month, eggs became nearly 11 percent cheaper, and consumers benefited from a 12 percent fall in petroleum product prices alongside a 4.3 percent reduction in electricity bills.
In a significant development, despite the monthly easing, annual price hikes remained substantial across many essential goods and services. Wheat prices were 65 percent higher than a year earlier, with flour prices up by 55 percent. Tomato prices increased by 52 percent year-on-year, and onions were 60 percent more expensive.
Meat, dairy products, and bakery items also experienced notable annual price rises. In contrast, potatoes were 40 percent cheaper than a year ago, eggs declined by 33 percent, and sugar prices fell by 16 percent.
Meanwhile, liquefied petroleum gas (LPG) prices rose by over 60 percent annually. Transport costs, petrol, electricity, and gas tariffs also saw significant year-on-year increases, highlighting the ongoing strain on household budgets despite the moderation in headline inflation.
