July CPI inflation soars to 0.36 percent MoM

The CPI inflation increased to 0.36 percent in July 2015 over previous month, according to Pakistan Bureau of Statistics. The PBS, which compiles and releases inflation figures, said Monday that the inflation rate was recorded at 0.36 percent in July 2015 over June 2015 and 1.80 percent in July 2015 over the same month of last fiscal year. Analysts said recorded inflation number was surprising for them because it does not capture increase even in prices of essential commodities that people experienced during Ramazan.
The price of food & non-alcoholic beverages registered negative by 0.33 percent and perishable food items negative by 12.92 percent. The prices of food items have registered an increase of 2.25 percent in July over June 2015, alcoholic beverages and tobacco by 16.56 per cent, clothing and footwear by4.84 per cent, housing, water, electricity, gas & other fuels by 4.47, furnishing & household equipment maintenance by 4.46 percent, health 3.18 percent, communication 0.39 percent, recreation & culture by 2.25 percent, education by 9.32 percent, restaurant & hotel by 4.38 percent and miscellaneous goods & services by 2.83 percent.
Main contributors to month-on-month inflation in July over June 2015 are increase in the price of pulse gram by 8.26 percent, fresh fruits by 7.20 percent, potatoes by 6.81 percent, besan by 5.63 percent, sugar by 5.37 percent, gram whole by 3.06 percent, gur by 2.55 percent, cigarettes by 1.70 percent, tea by 1.33 percent, eggs by 1.26 percent, meat by 1.14 percent and beverages by 1.10 percent.
The price of tomatoes in July 2015 over previous month decreased by 29.06 percent, onions by 8.83 percent, chicken by 5.30 percent, fresh vegetables by 3.74 percent, pulse moong by 1.73 percent, beans by 1.63 percent, betel leaves & nuts by 1.36 percent and fish by 1.03 percent. Price of non-food items kerosene oil increased by 5.53 percent, motor fuel by 2.71 percent, tailoring by 1.74 percent and furniture by 1.10 percent. Year-on-year price of tomatoes increased by 79.61 percent in July 2015 over same month of last fiscal year, onions 43.46 percent, pulse gram by 26.08 percent, besan by 23.42 percent, pulse mash by 21.31 percent, chicken 20.33 percent, cigarettes by 17.68 percent, sugar by 12.99 percent, tea by 11.67 percent and fresh vegetables by 10.31 percent. Trimmed core inflation during the month of July 2015 over July 2014 has been observed as 2.8 percent while it was 7.6 percent during July 2014 over July 2013. Non-food & non-energy core inflation during July 2015 over July 2014, has been observed as 4.1 percent while it was 8.3 percent during July 2014 over July 2013.