In Jun’24, the headline inflation rate stood at 12.6%.

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  • In Jun’24, the headline inflation rate stood at 12.6%, rising from the previous month’s YoY rate of 11.8%. This increase contrasts sharply with Jun’23, which recorded a much higher YoY inflation rate of 29.4%.
  • For FY24, the average headline inflation rate was 23.4%, a significant drop from the 29.2% average in the same period last year.
  • The uptick in Jun’24’s inflation was driven by rising prices across various sectors, including food (1.0% YoY), transportation (10.4% YoY), housing (35.3% YoY), restaurants (11.9% YoY), alcoholic beverages and tobacco (5.8% YoY), household equipment (12.4% YoY), miscellaneous items (14.4% YoY), recreation and culture (10.0% YoY), and clothing and footwear (17.8% YoY).
  • Month-on-month, inflation rose by 0.5%. The housing index contributed significantly to this increase, climbing 1.5% MoM due to higher electricity charges from Fuel Cost Adjustment (FCA) and LPG prices.
  • The food index also saw a MoM increase of 0.12%, driven by rising prices of vegetables, pulses, and milk.
  • Conversely, the transport index dropped by 2.2% MoM, primarily due to lower petroleum product prices.
  • Core inflation for the outgoing month averaged 14.1% YoY, slightly down from the previous month’s 14.2%.
  • Urban core inflation for Jun’24 was 12.2% YoY, a slight decrease from 12.3% in the prior month and a significant drop from 18.5% in Jun’23.
  • Rural core inflation, however, rose to 17.0% YoY in Jun’24, consistent with the previous month’s increase and down from 25.2% in Jun’23.
  • On a MoM basis, urban core inflation increased by 0.6%, while rural core inflation rose by 0.9%.

Courtesy – AHL Research

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