CPI inflation rises by 8.1 per cent in Jan

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ISLAMABAD - The rate of inflation in Pakistan rose in the month of January 2013, though it remained within single digits, as the benchmark consumer price index clocked in an increase of 8.1 per cent in last month compared to the same period the previous year.
According to the data released by the Pakistan Bureau of Statistics (PBS), inflation based on Consumer Price Index (CPI) has recorded at 8.1 per cent during the month of January compared to the same month of the preceding year. Rate of inflation has started increasing from last few months, as it was 7.9 per cent in December 2012 and 6.9 per cent in November 2012.

Discount rate might witness an upward revision by 50 basis points, thereby increasing to 10 percent from the existing 9.5 percent mainly due to an increasing trend in core inflation in the upcoming monetary policy, which is to be announced on February 8. Earlier, due to decline in inflation rate, the State Bank of Pakistan (SBP) has reduced interest rate by 50 basis points to 9.5 percent with effect from 17 December 2012.

The government has successfully kept the inflation rate in single digit figure during the first seven months (July-January) of the ongoing financial year 2012-13, as it recorded at 8.28 per cent in period under review against corresponding period last year.

This broad-based deceleration in inflation is now expected to keep the average inflation for the fiscal year 2012-13 below the 9.5 per cent target for the year. Meanwhile, Sensitive Price Index (SPI) based inflation surged by 7.71 per cent and Wholesale Price Indicator (WPI) based inflation increased by 8.03 per cent during July-January period of the ongoing financial year 2012-13.

Meanwhile, according to the PBS figures, CPI based inflation increased by 1.7 per cent in January 2013 against December.

The break-up of CPI-based general inflation (8.07 per cent in January 2013 over January 2012) showed that food and non-alcoholic beverages prices have gone up by 7.62 per cent, alcoholic beverages and tobacco prices have increased by 18.24 per cent, clothing and footwear prices soared by 15.27 per cent, housing water, electricity and gas fuels, 3.59 per cent, health care charges went up by, 13.69 per cent, transportation charges, 10.89 per cent, communication charges 5.15 per cent, recreation and culture charges went up by 17.59 per cent, education charges, 9.91 per cent and restaurants and hotel charges by 10.39 per cent and miscellaneous 10.49 per cent in January 2013 against the same month of the preceding year 2012.

Meanwhile, according to the PBS figures, price of tomatoes has increased by 61.12 per cent in the month of January against December, price of wheat enhanced by 11.32 per cent, price of chicken went up by 10.84 per cent, price of wheat flour surged by 9.69 per cent, price of wheat products increased by 8.21 per cent, rice price surged by 3.38 per cent, pulse masoor price increased by 2.56 per cent, fish price enhanced by 2,52 per cent, price of pulse moong went up by 2.39 per cent and besan price surged by 1.85 per cent in January 2013 as compare to December.

Similarly, price of motor fuel increased by 7.02 per cent, price of gas enhanced by 6.13 per cent, price of woolen readymade garments by 4.16 per cent, price of communication and apparatus went up by 3.95 per cent, firewood whole, 2.35 per cent, house rent up by 2.04 per cent, medical equipment, 1.28 per cent, construction wage rates, 1.15 per cent, newspaper, 1.07 per cent, tailoring, 1.05 per cent and woolen cloth 1.02 per cent in January 2013 compared with the month of Dec 2012.

However, according to the PBS figures, price of potatoes decreased 14.55 per cent, price of onions down by 7.62 per cent, prices of spices went down by 3.43 per cent, prices of fresh vegetables reduce by 2.45 per cent, price of vegetable ghee down by 0.89 per cent, fresh fruits prices decreased by 0.57 per cent each in January 2013 against in December.

Courtesy: The Nation

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