Pakistan Economy: Inflation - Sep’19 reading kills early easing prospects
- Headline inflation for Sep’19 jumped to a multi-year high of 11.38%YoY vs. 10.50%YoY in the preceding month and 5.40%YoY in Sep’18. The acceleration was primarily driven by the Food group (+2.12%MoM), reflecting the rising prices both in perishable (+4.95%MoM) and non-perishable items (+1.58%MoM).
- The monthly inflation rate, however, dropped to 0.76%MoM vs. average monthly rate of 1.8%MoM in 2MFY20, as the country moves past the economic adjustment phase. The authorities’ decision to cut fuel prices for Sep’19 (-3.36%MoM on avg.) also played its part, partially offsetting the impact of rising food prices.
- Market-wise, Urban inflation accelerated to 11.56%YoY (vs. 10.64%YoY in Aug’19 and 5.6%YoY in Sep’18) driven by rising food, clothing and appliances prices , while Rural Inflation jumped to 11.09%YoY (vs. 10.27%YoY in Aug’19 and 5.1% in Sep’18), with the heavy-weight food group being the single largest contributor (~99%).
- Higher than expected inflation reading may dent the expectations of an early rate cut, where elevated inflationary pressures and challenges on the fiscal front will likely lead to Status Quo on the monetary policy front.
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.