Overview of what inflation is, how its measured in Pakistan and what are some issues with measurement that Pakistan Bureau of Statistics need to take into account.

1. F O R C I R C U L AT I O N
How does inflation affect the average Pakistani?
Macro Pakistani

2. 2
Impact on inflation is highest from most heavily weighted food and housing
As of April 2021 Urban Rural
CPI Weight Price Change Impact on CPI Weight Price Change Impact on CPI
Food & Beverages 30.4 17.01% 5.12% 40.9 14.69% 6.02%
Alcohol/Tobacco 0.9 6.04% 0.23% 1.3 3.66% 0.05%
Housing/Utilities 27.0 9.26% 2.49% 18.5 10.66% 1.90%
Furnishings 4.1 8.57% 0.34% 4.1 10.30% 0.43%
Clothing & Footwear 8.0 12.74% 1.01% 9.5 10.83% 1.07%
Health 2.3 9.40% 0.23% 3.5 8.56% 0.32%
Transport 6.1 6.79% 0.43% 5.6 6.07% 0.34%
Communication 2.4 1.95% 0.04% 2.0 0.80% 0.01%
Recreation 1.7 3.24% 0.05% 1.4 6.99% 0.09%
Education 4.9 1.19% 0.06% 2.1 2.91% 0.06%
Restaurants 7.4 8.53% 0.63% 6.2 7.62% 0.48%
Miscellaneous 4.8 9.83% 0.49% 5.0 10.33% 0.55%
Total 100.0 10.96% 100.0 11.33%
Source: Pakistan Bureau of Statistics; MP Analysis

3. 3
Nominal GDP growth from inflation has been higher than change in real output
Source: Pakistan Bureau of Statistics; MP Analysis

4. 4
Spending during pandemic has increased significantly on food and housing
Note: Share changes based on IMF calculations for Canada
Source: IMF Working Paper WP/20/224

5. 5
Until 2020, burden of inflation had started falling on the rich more than poor
Note: Base year 2007-08; May 2020 figures shown for 2020 (reporting of CPI in quintiles discontinued after)
Source: Pakistan Economic Survey 2018-19
Year Combined <PKR 8,000 PKR 8-12,000 PKR 12-18,000 PKR 18-35,000 >PKR 35,000
2009 17.0% 18.0% 17.8% 18.1% 17.6% 16.8%
2010 10.1% 10.5% 10.5% 10.6% 10.3% 9.8%
2011 13.7% 14.5% 14.3% 13.0% 14.7% 13.3%
2012 11.0% 10.0% 10.6% 10.5% 10.8% 11.5%
2013 7.4% 7.9% 8.6% 8.4% 6.8% 6.4%
2014 8.6% 8.8% 8.5% 9.1% 9.1% 8.3%
2015 4.5% 3.7% 3.8% 4.3% 4.4% 4.8%
2016 2.9% 2.4% 2.8% 2.4% 3.0% 3.0%
2017 4.2% 3.8% 3.9% 3.9% 4.1% 4.3%
2018 3.9% 2.8% 3.1% 3.2% 3.5% 4.6%
2019 7.0% 4.9% 5.3% 5.5% 6.9% 8.4%
2020 9.1% 11.8% 11.5% 11.0% 9.4% 7.5%