Wednesday, 03 August 2011 10:31
ISLAMABAD - Inflation surged to 13. 77 per cent during the first month of the ongoing financial year 2011-2012 (July) against the same period of last year, Federal Bureau of Statistics reported on Tuesday.
According to the latest figures, inflation based on Consumer Price Indicator (CPI) went up to 13. 77 per cent in July 2011 against the same month of last financial year (July 2010). Meanwhile, inflation measured through Sensitive Price Indicator (SPI) increased by 17. 34 per cent and Wholesales Price Index (WPI) based inflation enhanced by 21. 13 per cent during the first month of the year 2011-2012.
The economists believed that there were several reasons behind this increasing inflation and one of the main reasons behind the soaring inflation was rise in prices of basic essential items, ahead of the holy month of Ramazan, which is a common practice.
Apart from independent economists, the State Bank of Pakistan also projected that CPI based inflation would remain at 12 per cent during the ongoing fiscal year. The economists believed that the government should stop borrowing from the SBP in order to control the soaring inflation instead of following tight monetary policy.
According to the latest data, CPI based inflation increased by 1. 80 per cent in July as compared to the month of June while SPI went up by 2. 22 per cent in July against June. However, WPI based inflation registered minor decline of 0. 64 per cent in July 2011 against June 2011.
The break-up of CPI-based general inflation (13. 77 per cent in July 2011) showed that food inflation went up by 17. 58 per cent, apparel, textile and footwear prices soared by 13. 12 per cent, house rents increased by 8. 79 per cent, fuel prices by 7. 41 per cent, household, furniture and equipment by 11. 56 per cent, recreation and entertainment by 1. 90 per cent, education by 7. 27 per cent, cleaning and laundry rates by 17. 02 per cent and Medicare rates shot up by 17. 34 per cent and transport and communication charges went up by 13. 61 per cent in July 2011 over the same period of the last year.
According to the figures, the prices of main kitchen commodities that increased in July 2011 as compared to June 2011 included tomatoes 85. 34 per cent, chicken 18. 65 per cent, eggs 14. 65 per cent, vegetables 14. 38 per cent, potatoes 12. 10 per cent, onions 9. 55 per cent, gram whole 7. 02 per cent, pulse gram 5. 25 per cent, gur 3. 91 per cent, besan 3. 75 per cent, sugar 3. 07 per cent, wheat 3. 06 per cent, cigarettes 3 per cent, rice 2. 94 per cent wheat flour 2. 74 per cent, fresh fruits 2. 21 per cent and maida 1. 60 per cent.
Meanwhile, in apparel textile and footwear group, prices of cotton cloth enhanced by 1. 53 per cent, readymade garments 1. 33 per cent, silk, linen and woollen cloth by 0. 91 per cent and tailoring charges by 0. 90 per cent in July against June 2010.
Similarly, the prices of natural gas/LPG increased by 1. 94 per cent and bulb and tube prices surged by 1. 14 per cent in July as compared to June 2011, the FBS data revealed. According to the figures, prices of sewing machine, clock and needles increased by 2. 72 per cent, suitcase 1. 98 per cent, furnishing 1. 71 per cent, household equipments 1. 70 per cent and furniture (readymade) 1. 55 per cent in the period under review.
Meanwhile, prices of petrol went down by 3. 40 per cent and diesel prices decreased by 2. 04 per cent in July 2011 against June 2011.