Consumer inflation falls to 9.6pc in Oct from 10.3pc in Sept

ISLAMABAD: Consumer inflation eased to 9.6 per cent in October from 10.3pc a month earlier, mainly due to a slight slowdown in perishable food products, the Pakistan Bureau of Statistics said on Monday.

The slowdown in the inflation rate for the second consecutive month, measured by the Consumer Price Index, reversed the sharp increase recorded in August, when higher food and energy prices pushed the annual rate to 11.1pc from 9.2pc in July.

The easing was recorded in both places, in rural areas where inflation fell to 9.5pc from 10.1pc, while urban inflation edged down to 9.8pc from 10.5pc.

The October reading was also within the Ministry of Finance’s projection of 9.5pc to 10.5pc for the month in its Monthly Economic Update and Outlook for October. According to the finance ministry, easing headline inflation offers some relief, while improved crop supplies can help ease food price pressures.

However, despite the decline in the annual rate, prices rose 1.1pc month-on-month in October. The annual inflation rate was 6.2pc in October last year.

The average inflation between July and October stood at 10.05pc compared with 4.79pc over the corresponding period last year.

The easing was largely driven by perishable food prices. Food inflation dropped to 7.8pc in urban areas in October from 8.1pc in September. The decline was much sharper in rural areas, where food inflation fell to 7.1pc from 7.7pc a month earlier.

However, non-food inflation moved in the opposite direction, indicating continued pressure on household expenses. Urban non-food inflation decelerated to 10.6pc from 11.5pc in September, while rural non-food inflation fell to 12.3pc from 13.1pc.

The latest data shows that the composition of inflation shifted in October. While food inflation slowed sharply, electricity and transport costs continued to rise. Electricity charges increased by 8.50pc from the previous month, while transport prices rose by 30.39pc in urban areas.

At the national level, transport costs increased by 1.79pc during October from the previous month and were 28.61pc higher than in the same month last year. Housing, water, electricity, gas and fuels increased by 0.25pc during the month and by 11.03pc on an annual basis.

Core inflation, which excludes volatile food and energy components, also eased slightly. It stood at 7.8pc in urban areas in October, compared with 8.6pc in September, while the rural rate declined to 7.1pc from 8.1pc.

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