Pakistan's CPI inflation clocks at 12.76% in June

Pakistan's Consumer Price Index (CPI) based inflation was recorded at 12.76 percent year-on-year in June, according to the data issued by the Pakistan Statistic Bureau (PBS) on Monday.

The index showed ease from historic inflation of 38% in May 2023, while the PBS reading displayed 23.4% inflation for the financial year, which ended June 30.

The data depicted the analysts found at least a 0.46% increase in headline inflation in June on a month-on-month basis. The PBS recorded 11.76% inflation in May, which increased to 12.57% in June.

The report stated that during June, urban areas and rural areas witnessed a 0.58% and 0.28% inflation rate, which was 24.12% and 22.41% in the corresponding year, respectively.

Month-on-month, the headline consumer inflation on essential commodities and services, also called the Consumer Price Index (CPI), rose 0.5% in June.

However, the CPI reading is in accordance with the forecasts of both the State Bank of Pakistan and Finance Minister Muhammad Aurangzeb. 

Last month, the Central Bank cut interest rate by 150 basis points, bringing it low from the highest 22% to 21.5 %.

However, the cut also provided relief to the government for its fiscal deficit of 5.9% of GDP, which assisted the authority to shrink 1.5% interest on debt.