CPI
Consumer Price Index
Definition
A statistical measure that tracks the change in prices of a fixed basket of goods and services purchased by households over time, used as the primary indicator of consumer inflation.
Simple Explanation
Think of the CPI as a shopping basket. The government tracks the prices of everything in the basket — bread, cooking oil, electricity, transport — every month. If the basket costs 10% more than it did a year ago, inflation is 10%. Pakistan's basket has a heavy weight on food (~35%) because most Pakistani families spend a large share of their income on food.
In Pakistan
Pakistan's CPI is published monthly by the Pakistan Bureau of Statistics (PBS). The basket weights come from the 2015–16 Household Integrated Economic Survey. Food carries ~34.6% weight — far higher than in the US (~14%) — which is why Pakistan's CPI is so sensitive to wheat, sugar, and cooking oil prices. The SBP targets 5–7% CPI over the medium term. Pakistan's CPI peaked at 38% in May 2023 and fell back to single digits by late 2024.
Example
If the PBS CPI for April 2024 is reported as 17.3% YoY, it means the basket of goods that cost PKR 1,000 in April 2023 now costs PKR 1,173 in April 2024 — a 17.3% increase.
Frequently Asked Questions
What is the difference between CPI and WPI?
CPI measures prices paid by consumers (retail level). WPI (Wholesale Price Index) measures prices at the wholesale/producer stage — before goods reach retail. WPI often leads CPI: rising wholesale prices eventually push up consumer prices. Pakistan publishes both.