Double-digit inflation continues: CPI increases by 11.1pc during July-Nov

ZAHEER ABBASI

ISLAMABAD: Double-digit headline inflation continues to plague the country as Consumer Price Index (CPI) increased by 11.10 percent during July-November 2011-12 compared to the same period of last year, Federal Bureau of Statistics (FBS) stated.

Official data of CPI released by officials of FBS at a news conference for the said period showed that food inflation has been the major driver with 14.73 percent increase in food and non-alcoholic beverages items and 12.30 percent increase in non-perishable food items during July-November 2011-12.

According to analysts, double-digit cost push inflation has been very high with the current rate of growth, and feared to have increased the national poverty. An official said that all hopes have diminished for taming the inflation with government's recent decision to increase the wheat support price by Rs 100 for the next season. The inflation is expected to increase on the back of food inflation in the last quarter of the current fiscal year with the arrival of next crop in the market.

Analysis of the data showed that the cost of perishable food items went up during July-Nov 2011-12 by 0.77 percent, alcoholic beverages & tobacco by 7.08 percent, clothing & footwear by 14.45 percent, housing, water, electricity, gas fuels by 7.52 percent, furnishing & household equipment maintenance by14.61 percent, health by 10.88 percent, transport by13.73 percent, communication by1.44 percent, recreation & culture by 5.28 percent, education by12.83 percent, restaurant & hotels by16.81 percent and  miscellaneous by 20.21 percent.

The main commodities which showed increase during July-November 2011-12 over previous year were spices 39.97 percent, medical equipment 30.11 percent, personal equipment 29.69 percent, vegetable ghee 27.85 percent, fire wood 27.01 percent, cooking oil 26.45 percent, gram whole 25.65 percent, fresh fruits 25.44 percent, kerosene oil 24.74 percent, blades 23.04 percent, betel leaves & nuts 22.78 percent, dopatta 22.46 percent, woollen cloth 22.43 percent, rice 21.38 percent, milk products 21.35 percent and milk fresh 21.01 percent.

Monthly comparison showed that inflation rate increased by 0.29 percent in November over October 2011 with an increase of 39.38 percent in onion price, 9.89 percent eggs, 5.06 percent condiments, 3.38 percent sweetmeat. The price of betel leaves & nuts increased by 3.05 percent in November compared to October 2011-12, fish 2.32 percent, milk fresh 2.21 percent, meat 2.05 percent, cereals 1.81 percent, wheat 1.80 npercent, spices 1.59 percent, honey 1.46 percent, milk product 1.29 percent, milk powder 1.26 percent, mustard oil 1.13 percent, beverages 1.10 percent, beans 1.09 percent and wheat flour 1.08 percent.

Monthly comparison over the same month of previous year showed that the price of tomatoes increased in November 2011 over the same month of last year by 42.02 percent, spices 36.37 percent, fresh fruits 29.62 percent, betel leaves & nuts 24.56 percent, gram whole 24.19 percent), condiments 23.50 percent, milk fresh 21.11 percent, milk product 20.47 percent, beverages 19.79 percent, cooking oil 19.56 percent and meat 19.35 percent. The trim core inflation was recorded 11.5 percent in November 2011 over November 2010 and non-food non-energy core inflation was recorded 10.4 percent in November 2011 over the same month of last year.