• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Trending:
  • Kashmir
  • Elections
Thursday, July 17, 2025

Daily Times

Your right to know

  • HOME
  • Latest
  • Iran-Israel Tensions
  • Pakistan
    • Balochistan
    • Gilgit Baltistan
    • Khyber Pakhtunkhwa
    • Punjab
    • Sindh
  • World
  • Editorials & Opinions
    • Editorials
    • Op-Eds
    • Commentary / Insight
    • Perspectives
    • Cartoons
    • Letters to the Editor
    • Featured
    • Blogs
      • Pakistan
      • World
      • Ramblings
      • Lifestyle
      • Culture
      • Sports
  • Business
  • Sports
  • Lifestyle
  • E-PAPER
    • Lahore
    • Islamabad
    • Karachi

Agencies

CPI hits 28-month high in May to reach 13.76pc

The Consumer Price Index Inflation-based inflation surged to a nearly two-and-a-half-year high at 13.76 percent in May 2022 on the back of increasing transport and food prices. According to data released by the Pakistan Bureau of Statistics (PBS) on Wednesday, inflation accelerated from 13.37 percent year-on-year (YoY) in April, marking a 0.44 percent month-on-month (MoM) rise in May. This is the highest CPI inflation since January 2020 when it was 14.6 percent.

According to the PBS, inflation increased by 12.36 percent in urban areas and 15.88 percent in rural areas. The inflationary trend was led by transport, which saw a 31.77 percent rise, followed by food at 17.25 percent. Prices of perishable food items increased by 26.37pc and non-perishable items by 15.94pc, according to the PBS data. Other categories that saw a double-digit increase included furnishing and household equipment maintenance (16.11pc), restaurants and hotels (15.98pc), miscellaneous goods and services (13.32pc), recreation and culture (12.28pc), clothing and footwear (11.29pc), health (10.59pc) and alcoholic beverages and tobacco (10.13pc).

The finance ministry, in a report released last week, highlighted accelerating inflation, along with other factors such as high external deficits, exchange rate depreciation, declining foreign exchange reserves and mounting uncertainty, among the challenges faced by the country in sustaining growth achieved in the last fiscal year.

The report noted that the primary contributors to increasing inflation were the surge in international commodity prices and a significant exchange rate depreciation. In fact, the depreciation of the rupee, both against the US dollar and on a trade-weighted basis, against the currencies of Pakistan’s main trading partners is primarily a reflection of the inflation differential between the country and its partners.

Further, relatively high domestic inflation is compensated by rupee depreciation. However, currency depreciation itself feeds into higher domestic inflation. In this sense, Pakistan is caught in a vicious inflation/currency depreciation spiral. In the short run, a predicament to stop this cycle is to pursue restrictive fiscal and monetary policies, coupled with policies and announcements that restore market agents’ confidence. In the longer run, Pakistan’s main problems can be solved by designing a credible sustainable future economic trajectory that inspires consumer and investor confidence.

Filed Under: Business

Submit a Comment




Primary Sidebar




Latest News

PTI warns: The movement peaks on August 5

PAF to showcase JF-17 at prestigious UK event

Emma Watson fined, license suspended for speeding

Lion cubs seized in wildlife sweep across Punjab

Pakistani mangoes shine in Doha with 600 maunds sold

Pakistan

PTI warns: The movement peaks on August 5

PAF to showcase JF-17 at prestigious UK event

Lion cubs seized in wildlife sweep across Punjab

Navy chief emphasizes readiness, tech at high-level conference

Fake domicile scandal rocks Sindh police recruitment

More Posts from this Category

Business

Rs4.66bn goes digital in eid cattle markets

Gold price falls Rs3,000 per tola in Pakistan

Punjab allocates Rs42bn for ‘apni chhat apna ghar’ program

PSX nears record highs amid moody’s buzz, then pulls back

Govt slashes sugar import after IMF warning and political pressure

More Posts from this Category

World

Gaza toll rises: 21 killed in aid stampede, 51 dead overall

Astronomers witness birth of a solar system

Rubio warns Israeli strikes could derail Syria peace efforts

More Posts from this Category




Footer

Home
Lead Stories
Latest News
Editor’s Picks

Culture
Life & Style
Featured
Videos

Editorials
OP-EDS
Commentary
Advertise

Cartoons
Letters
Blogs
Privacy Policy

Contact
Company’s Financials
Investor Information
Terms & Conditions

Facebook
Twitter
Instagram
Youtube

© 2025 Daily Times. All rights reserved.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.