March CPI up 10.79pc

ZAHEER ABBASI

ISLAMABAD: The headline inflation measured by Consumer Price Index (CPI) and largely driven by the food inflation witnessed an increase of 10.79 percent in March 2012 over the same month of last year, according to Pakistan Bureau of Statistics (PBS).

Official figures of monthly inflation, CPI, released by the PBS showed 10.79 percent average inflation during July-March 2011-12 over the same period of last year. Secretary Pakistan Bureau of Statistics, Sohail Ahmed and DG said that fuel adjustment surcharge which would have considerable impact was not included in the inflation figures for the month of March 2012. Analysts said that the inflation would continue to haunt the poor as a result of certain decision taken by the Pakistan People’s Party (PPP) led government after coming into power to appease their constituents in rural areas. They attributed increase in wheat support price from Rs 625 per 40 kg in 2008 to Rs 1050 in 2011, government borrowing to finance fiscal deficit, as major factors for high inflation in the country and a challenge for future government to reduce it to a reasonable level. The inflation in Pakistan is relatively high as compared to India, Nepal and China.

Analysts said that inflationary pressure would mount as a consequence of latest increase in POL, LPG, CNG and electricity cost. The CPI, a main gauge to measure price change at retail level and covers 374 items in 35 major cities, revealed exorbitant increase of 11.17 percent in food inflation during July-March 2011-12 over the same period of last year and 9.81 percent in March 2012 over the same month of last year.

Analysis of the monthly figures revealed that the cost of food and non-alcoholic beverages went up by 9.81 percent in March 2012 over the same month of last year, alcoholic beverages and tobacco by 7.98 percent, clothing and footwear prices soared to 16.60 percent, housing water, electricity and gas fuels 7.55 percent, health care charges 12.2 percent, transportation 19.10 percent, education 11.91 percent. Analysis of the data revealed that furnishing and household equipment maintenance cost surged by 19.60 percent in March 2012 over corresponding month of the previous year, recreation and culture by 6.5 percent, restaurants and hotel charges by 11.2 percent while only communication charges went down by 0.57 percent in March 2012 against corresponding month of the last year.

According to the PBS, the prices of gram pulse increased by 33.47 percent in March 2012 over February 2012, besan 23.79 percent, fresh fruit 17.12 percent, sugar 11.80 percent, whole gram 10.57 percent, beans 5.57 percent, fish 3.40 percent, potatoes 3.07 percent, pulse moong 2.54 percent, vegetable ghee 2.40 percent, fresh vegetable 2.20 percent, and price of cooking oil increased by 2.06 percent during the month. In non-food group, motor vehicle tax up by 20.34 percent, footwear 14.25 percent, kerosene oil 3.5 percent and marriage hall charges by 2.88 percent etc. Core inflation measured by non-food non-energy CPI (Core NFNE) during the month of March 2012 increased by 10.8 percent compared to 9.6 percent of March 2011.