Govt Expects Inflation to be Around 12-13% for July

The federal government expects inflation to be around 12-13 percent for July 2024 and 11-12 percent in August 2024. In its Monthly Economic Update & Outlook for July 2024, the finance division highlighted that in June 2024, CPI inflation reached the cusp of the single-digit range. The CPI in inflation was recorded at 12.6 percent YoY in June 2024, compared to 11.8 percent in the previous month and 29.4 percent in June 2023. It increased by 0.5 percent MoM in June 2024, compared to a decrease of 3.2 percent in the last month. The average annual inflation fell to 23.4 percent in FY24 from 29.2 percent last year. The significant contributors to inflation were Housing, Water, Electricity, Gas & Fuel (35.3 percent), Perishable food items (20.8 percent), Health (19.8 percent), and Clothing & Footwear (17.8 percent). On the other hand, prices of nonperishable food items declined by 1.8 percent. The Sensitive Price Index (SPI) witnessed 0.76 percent weekly growth in the week ending on July 18, 2024. Within the SPI, prices of 5 items declined, 17 remained stable, and 29 increased.