Larkana becomes most expensive city of the country

For the third consecutive month Larkana, the city of the ruling party, has observed highest inflation and appeared to be the most expensive city of the country during January 2012. According to State Bank of Pakistan's inflation monitor, among 40 largest cities of Pakistan, some 17 cities have observed high inflation during the period under review. Inflation in these cities is in double digit and above 10 percent.
The State Bank has also revealed that Larkana is remained the most expensive city of the country for the third consecutive month as highest inflation has witnessed during January 2012. Larkana has observed 15.9 percent inflation during January 2012. Inflation during December 2011 and November was 16 percent and 5.3 percent respectively. Detailed analysis showed that food inflation stood at 11.6 percent and non-food at 19 percent in Larkana during the period under review.
According to SBP Consumer Price Index (CPI) Inflation on year-on-year basis in federal and provincial capitals of Pakistan is lower than overall inflation observed during January 2012 except Karachi. Among these five cities (Federal and provincial capital), the lowest inflation was observed in Peshawar which is 7.7 percent while the highest inflation was observed in Karachi which is 10.1 percent.
Among Federal and provincial capitals, the inflation in Islamabad, Lahore and Peshawar is 9 percent, 8.8 percent and 7.7 percent, respectively, during December 2011. In Karachi food inflation is higher than non-food inflation, as food and non-food inflation stood at 11.8 percent and 8.8 percent, respectively.
With 13.2 percent inflation, Dera Mrd. Jamali reported as second most expensive city. Among high inflation cities Gujranwala registered 12.3 percent, Rahim Yar Khan 12.0 percent, Bahawalpur 11.9 percent, Bahawalnagar 11.8 percent, Loralai&Cantt 11.2 percent, Mithi 11.1 percent, Sahiwal 11.0 percent, Muzaffargarh 10.9 percent, Sargodha 10.7 percent, Dadu 10.6, percent, Mir Pur Khas 10.5 percent, Mingora 10 percent and Rawalpindi 10 percent during the last month.
Headline CPI inflation on base (2007-08=100) is recorded at 10.1 percent on year-on-year basis in January 2012 as compared to 9.7 percent in the previous month and 13.9 percent in the corresponding month of last year, according to SBP's inflation monitor.
CPI inflation on month-on-month basis increased to 1.5 percent in January 2012 as compared to -0.7 percent in the previous month and 1.2 percent in the corresponding month of last year. Seasonally adjusted month-on-month CPI inflation comes to 1.0 percent in January 2012 as compared to 0.6 percent in previous month.
On month-on-month basis, the Core inflation (trimmed) was 0.8 percent in January 2012 as compared to 0.3 percent in December 2011 and 1.1 percent in January 2011. Non-food, non-energy inflation measured by CPI Core (None-food Non-Energy) on year-on-year basis is recorded at 10.3 percent in January 2012 as compared to 10.2 percent a month earlier and 9.9 percent in January 2011.
Core NFNE inflation on month-on-month basis increased to 1.1 percent in January 2012 as compared to 0.5 percent a month earlier. Core NFNE was 1.0 percent in January 2011. WPI inflation on year-on-year basis increased to 8.7 percent in January 2012 when compared to 8.3 percent a month earlier. During January 2011, WPI inflation was recorded at 20.9 percent.