Inflation jumps to 8.3 percent in July

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ISLAMABAD: Inflationary pressure on Pakistan’s economy during July 2013-14 has jumped to 8.3 percent from 5.9 percent in the previous month of June 2012-13. This huge jump is a worrisome sign, say independent economists, which signals a further price hike in the months to come.

 

This figure is the highest in the last ten months. Last year, in the same month of July, inflation was recorded at 9.6 percent. On month-on-month (MoM) basis, consumer price index (CPI) inflation rose by two percent in July 2013 as compared to 0.7 percent in June 2012, reported the Pakistan Bureau of Statistics (PBS) on Thursday.

 

Interestingly, this leap in inflation on MoM basis is 34-month high, as last time in September 2010 the highest MoM jump was 2.03 percent.

 

Economists believe that in coming months, rising petroleum and electricity prices are expected to jack CPI up.

 

According to the CPI figures, prices of food and non-alcoholic beverages increased 8.94 percent in July, alcoholic beverages and tobacco 14.84 percent, clothing and footwear 14.94 percent, furnishings and household equipment maintenance 7.6 percent, healthcare charges 7.75 percent, and transportation charges 5.74 percent. Charges related to recreation and culture over this period went up 8.4 percent, education 7.56 percent, and restaurants and hotel charges 8.98 percent in July 2013 over the same month in 2012.

 

From 2003 to 2012, inflation rate was averaged at 10.6 percent. CPI inflation touched the highest level of 25.3 percent in August 2008 due to a huge surge in food and commodity prices.

 

In July 2003, it was recorded at the lowest level of 1.4 percent. CPI is a basket of goods that covers the retail prices of 374 items in 35 major cities. Meanwhile, the wholesale price index (WPI) on a year-on-year (YoY) basis went up to 6.5 percent in July as compared to 5.2 percent a month ago and 7.2 percent in July 2012.

 

The sensitive price indicator (SPI) – which gauges weekly based inflation in kitchen items – increased on a YoY basis by 9.8 percent in July 2013 as compared to 7.9 percent a month ago and 7.7 percent in July 2012.

 

The PBS figures showed the core inflation measured by non-food non-energy CPI (Core NFNE) shot up by 8.2 percent in July 2013 as compared to 7.8 percent in June 2013 YoY and by 11.3 percent in July 2012. Core NFNE inflation on MoM basis increased by 1.5 percent in July 2013 as compared to 0.4 percent a month earlier and one percent in July 2012.




Courtesy:   The News


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