Islamabad: In a mixed display of economic trends, Pakistan’s annual headline inflation saw a decrease in July 2024, although food prices continued to climb.

According to United Nations World Food Programme, the Consumer Price Index (CPI) based Annual Headline Inflation was recorded at 11.1% in July 2024, showing a decrease from 12.6% the previous month. In contrast, the CPI on a month-to-month basis rose by 2.1%.

The report detailed that annual food inflation rose by 1.6% compared to July 2023. Notably, the price of staple cereals like wheat flour increased considerably over the past month. Additionally, there was a slight increase in the prices of wheat and rice (Irri-6 variety). When compared year-on-year, a significant increase in the price of Irri-6 rice and a notable decrease in the prices of wheat and wheat flour were observed.

Non-cereal food prices showed variability, with significant month-over-month price increases noted for live chicken and pulse Gram. Other food items such as moong, masoor, mash, sugar, and eggs also saw price increases compared to the previous month. Year-over-year, significant price spikes were observed for pulses such as Gram, moong, mash, and masoor, with a slight increase in sugar prices. Conversely, prices for live chicken, cooking oil, and ghee registered significant decreases.

The report also highlighted changes in the Terms of Trade (ToT), which worsened by 7% over the past month. However, there was an overall improvement of 57% compared to the same period last year, indicating some recovery in trade conditions.

These mixed economic indicators reflect the ongoing challenges and complexities facing Pakistan’s economy, particularly in managing food security and inflation amidst changing global and local dynamics.