Leading Issues in the Economy of Pakistan: Agenda for Reforms Table 11.5: Contribution of Different Factors to Inflation in Pakistan (%) Annual Monetary GDP Rise in Depreciation Rise in Inflationary Year Rate of Expansion Growth Import Prices of Exchange Administered Expectations Total Inflation(in$) Rate Prices 2016-17 4.2 93.2-55.8-12.3 2.4 7.6 64.9 100.0 2017-18 3.9 55.7-44.3 2.9 18.3 10.5 56.9 100.0 2018-19 7.3 27.5-15.7-33.3 51.5 33.4 36.6 100.0 2019-20 10.7 17.3 2.4 7.6 34.3 0.9 37.5 100.0 2020-21 8.9 16.3-19.6 9.1 2.4 23.0 68.8 100.0 2021-22 12.2 19.8-13.1 20.5 16.0 10.5 36.3 100.0 2022-23* 25.2 9.2 1.2 30.1 23.1 11.9 27.5 100.0 Average 2016-17 to 2022-23 34.1-21.1 4.9 21.1 14.0 46.9 100.0 2019-20 to 2022-23 15.6-8.0 19.3 19.0 11.6 42.5 100.0 Source: Estimated* first six months 11.3 Impact of Inflation The first analysis of importance is the relative impact of inflation on households in different income quintiles. Results of this analysis are shown for inflation in June 2022, when the rate of inflation had exceeded 21 percent in Table 11.6. Table 11.6: Groupwise Rate of Inflation in June 2021 and June 2022 Rate of Inflation June 2021 Composition of Consumption Expenditure 1 2 3 4 5 Overall Food, Beverages 10.48 48.52 45.90 43.09 39.53 28.62 37.05 Housing& Utilities 9.10 20.09 21.17 22.23 23.91 30.61 25.81 Services 9.20 31.39 32.93 34.68 36.56 40.77 37.14 TOTAL 9.65 100.00 100.00 100.00 100.00 100.00 100.00 Quintile Rate of Inflation June 2022 22.24 22.06 21.86 21.58 20.59 21.32 Quintile Rate of Inflation June 2021 9.80 9.76 9.73 9.68 9.54 9.65 Source: PBS Rate of Inflation June 2022 25.92 13.48 22.19 21.32 The rate of inflation among the three groups of food and beverages, housing and utilities and services was the highest at almost 26 percent in the case of food and beverages and 112