The CPI inflation swelled by 10.87 percent during July-December 2011-12 over the same period of last year with persistent double digits inflation for last 42 months, according to Pakistan Bureau of Statistics (PBS). "The headline inflation has been in double digits since July 2008" said Asif Bajwa, Secretary, at the first media briefing of newly constituted PBS here on Saturday along with the official release of monthly inflation, Consumer Price Index (CPI).
An official of the PBS was of the view that the double-digit inflation was very high in the economy growing at the rate of around 2 percent of the GDP, which it was feared to have pushed a considerable number of people into poverty. "The monthly inflation has remained in double digits since 2008" said Bajwa, who decline to comment on-record about its impact on poverty.
However, he admitted that monthly inflation was not reflecting true increase of electricity cost largely because it only notified price increase and not the fuel adjustment charges. "We need to put in place a system to capture the fuel adjustment charges in CPI because of its growing weight in the electricity cost" he remarked in response to a question.
Analysis of monthly data showed that food and non-alcoholic beverages inflation soared to 12.23 percent during July-December 2011-12 over the same period of last year while inflation of non-perishable food items was recorded at 14.53 percent and perishable food items 1.2 percent. The cost of alcoholic beverages and tobacco increased by 7.13 percent during the period under review, clothing & footwear 15.08 percent, housing, water, electricity, gas and fuels 7.76 percent, furnishing & household equipment maintenance 15.81 percent, health 11.43 percent, transport 14.13 percent, communication 1.41 percent, recreation and culture 5/49 percent, education 12.93 percent, restaurant and hotels 17.14 percent while price of miscellaneous items surged by 20.96 percent.
The main items which showed increase in their prices during July-December 2011-12 were spices (38.38percent), medical equipments (29.18 percent), personal equipments (28.18 percent), firework (27.09 percent), fresh fruits (25.80 percent), gram whole (25.10 percent), vegetable ghee (25.01 percent), kerosene oil (24.97 percent), cooking oil (24.33 percent), blades ?(23.44 percent), betel leaves and nuts (23.27 percent), woollen cloth (22/52 percent), milk products (21.24 percent), milk fresh (20.48 percent), rice (20.75 percent), household servant (20.30 percent), and motor fuel (20.15 percent). According to the FBR data, the inflation rate in December 2011 declined by 0.70 percent over the previous month of November 2011 and was recorded at 9.75 percent over the same month (December 2010) last year.
The decline in inflation by 0.70 percent was attributed to the price decrease in the vegetables, fruits, sugar, chicken and gur. The price of onion decreased by 27.60 percent in December 2011 over November 2011, potatoes (22.14 percent), sugar (17.44 percent), fresh vegetables (11.01 percent), tomatoes (1034 percent), gur (8.88 percent), fresh fruit (3.65 percent) and chicken (3.40 percent).