Pakistan: Inflation edges up by 11.3%

Remaining in double digits, the inflation increased by 11.3% during February over the same period of the last year because of surge in the prices of essential kitchen items. The official statistics showed that food and beverage inflation soared by 16.05% during February 2008 over a year ago, resultantly the general inflation measured by Consumer Price Index (CPI) registered a growth of 11.25%.
A comparative look on previous fiscal year revealed that during the corresponding period of financial year 2006-07 the general inflation based on CPI was 7.39 per cent as compared to the fiscal year 2005-06.

During the period under review the inflation in the wholesale market turned to be worst as compared to the retail market. The general inflation measured by Wholesale Price Index (WPI) skyrocketed to 16.36%. A year ago the WPI inflation was only 5.09%. The food inflation in the wholesale market recorded at 18.28% during February 2008 as against the same period of the last year. The government has projected inflation at 6.5% for the financial year 2007-08. The Federal Bureau of Statistics data depicted that the inflation soared to 8.9% during first eight months (July-February) of the current financial year. Similarly, in the given period the inflation based on WPI recorded at 11.68% and SPI stood at 11.68%.

The break-up of CPI based general inflation (11.25%) illustrated that apart from 16.05 per cent food inflation, apparel, textile and footwear inflation soared by 6.66 per cent in February 2008 over the same period of last fiscal year. Similarly, the house rent increased by 9.96% and transportation and communication prices accelerated by 2.97% mainly because of increase in oil prices. The fuel and lightening prices augmented by 6.17%, household, furniture and equipment 6.35%, recreation and entertainment 0.74%, education 3.43%, cleaning, laundry rates swelled by 13.04% and medicare prices shot up by 7.9% during the period under review.

The bifurcation of general inflation (16.36%) based on WPI showed that food group soared by 18.28%, raw materials 8.9%, fuel, lighting and lubricants 23.5%, manufactures 8.75% and building materials 10.85%. On month-on-month basis, the CPI based inflation ballooned by 0.49 per cent in February 2008 over January 2008. While inflation based on Sensitive Price Indicator decreased by 1.4%. The Wholesale Price Indicator ballooned by 1.24%. The main commodities in the food basket, which illustrated increase in February over January include, tomatoes 45.6 per cent, vegetables 29.2 per cent, pulse masoor 15.8 per cent, condiments 15.3 per cent, cooking oil 8.6 per cent, vegetable ghee 6.3 per cent, fresh fruits 5.7 per cent, rice 5.3 per cent, mustard oil 4.4 per cent and readymade food 2.97 per cent.

In fuel and lightening group, kerosene prices increased by 17.2 per cent and firewood three per cent. In transport and communication group, petrol prices soared by 9.37 per cent, diesel 9.3 per cent, tyre and tubes 1.7 per cent and vehicles 1.2 per cent.



Source: nation.com.pk

Publication date: 3/13/2008

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