Qudsia Bano

Despite an overall slowdown in inflation during December, the cost of education and healthcare continued to rise, highlighting persistent pressure in essential service sectors, according to the latest data released by the Pakistan Bureau of Statistics (PBS).

The PBS data show that education-related expenses increased by 9.1 percent on a year-on-year basis in December, while health-related costs rose by 6.6 percent, even as headline inflation eased to 5.6 percent. These increases indicate that core service-related expenses remain elevated despite the broader moderation in consumer prices.

On a month-on-month basis, education costs rose by 0.8 percent, reflecting higher fees and service charges. Health expenditures also rose by 0.6 percent during the month, driven by higher prices of medical services, diagnostic tests and healthcare-related items.

The persistence of higher education and healthcare costs contrasts with the decline in food prices observed during the month. While food inflation fell sharply due to lower prices of vegetables and other perishables, non-food components, such as education and health, continued to exert upward pressure on the overall inflation index.

According to the data, education and health collectively remained among the largest contributors to non-food inflation, which stood at 6.9 percent on a year-on-year basis in December. The sustained increase in these categories reflects structural cost pressures rather than short-term market fluctuations.

The data further show that education-related expenses increased consistently across both urban and rural areas, while health costs also rose in both segments, underscoring the widespread nature of the pressure on households.

Despite the easing of overall inflation, the continued rise in education and healthcare costs highlights the uneven nature of price adjustments across sectors. The figures suggest that while consumers may benefit from lower food prices, essential services continue to become more expensive, limiting the overall relief from inflation.

The December figures underscore the importance of monitoring non-food inflation components, as persistent increases in education and health expenditures can have long-term implications for household welfare and cost-of-living trends.

Credit: INP-WealthPk