Abstract
Persistence in inflation is important because it dictates the costs associated with monetary policy actions. We conduct a detailed analysis of the degree of intrinsic inflation persistence in Pakistan using aggregate price index, group level price indices, and individual commodity prices. Barring the case of food basket, inflation is found to be (significantly) persistent in Pakistan. As against the overall inflation, the degree of persistence is found to be very high for core inflation. These results are robust to structural shocks consideration and hold at aggregate as well as at commodity level analyses.