Islamabad Ranked as the Cheapest City in Pakistan

State Bank of Pakistan has ranked Islamabad as the cheapest city among the five major cities in Pakistan. In Islamabad, the consumer price index inflation (CPI) was recorded at 4.5% year-on-year in June 2018. Last year it was 5.0%.

Quetta, however, has been ranked as the most expensive city of Pakistan regarding the cost of living. In Quetta, consumer price index inflation (CPI) was recorded at 9.3% compared to 2.7% in June 2017.

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In June Pakistan’s consumer price index inflation went up to 5.2%. In the same month, last year the consumer price index inflation was 3.9%. State Bank of Pakistan said that on yearly basis for the consumer price index inflation in Islamabad and provincial capitals of Pakistan displayed a mixed trend during June 2018.

In Islamabad, the food inflation was 3.1% compared to Quetta’s 8.5%. The non-food inflation (clothing & shoes, housing, water & electricity supply, fuels, transport, education, and others) in Islamabad was 5.5% compared to 9.8% in Quetta which is the highest.

The increasing cost of living in the top 5 cities of Pakistan is largely due to the constant increment in the food and non-food group. However, in Islamabad, a decline was seen in the prices of commodities.

In the biggest city of Pakistan, Karachi the consumer price index inflation was 4.8% in June 2018 compared to 2.1% in June 2017. In Lahore, the consumer price index inflation went up to 5.2% in June 2018 compared 4.9% in June 2017. In Peshawar, the consumer price index inflation was recorded at 4.8% in June 2018 compared to 3.2% in June 2017.

The increasing fiscal deficit, food inflation is largely due to ever-increasing oil prices, and rupee devaluation against the dollar.

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