Annual inflation up by 3.8pc, monthly 0.2pc

| SPI increased by 1.51pc in five months of financial year 2016-17

ISLAMABAD -  The headline inflation measured through Consumer Price Index (CPI) increased by 3.8 percent in November 2016 over a year ago while inflation increased by 0.2 percent in November compared to the previous month of October.

According to the latest data of Pakistan Bureau of Statistics (PBS) released on Tuesday, inflation was recorded at 3.92 percent during the first five months (July-November) of the current fiscal year as compared to same period of the previous year.

For the year 2016-17, the government had set the inflation target at 6 percent. The central bank has warned that international oil prices fluctuation may impact inflation in the country. "After bottoming out in October 2015, the CPI inflation has been following a rising trend, with sporadic seasonal diversions. This anticipated rise is explained by stability in commodity prices against earlier sharp decline, phasing out of the second-round impact of oil prices, and some uptick in domestic demand," the State Bank of Pakistan noted in latest monetary policy.

The Monetary Policy Committee had decided to maintain the policy rate at 5.75 percent based on the macroeconomic considerations.

Inflation is likely to increase in the ongoing month, as the government enhanced the prices of petrol and diesel by Rs2 and Rs2.70 per litre respectively.

On a month-on-month basis, the PBS data showed that the CPI inflation increased by 0.2 percent in November 2016 compared to the previous month (October). Core inflation measured by non-food non-energy CPI (Core NFNE) increased by 5.3 percent on YoY basis in November 2016 as compared to increase of 5.2 percent in the previous month.

According to the data, Sensitive Price Indicator (SPI), which gauges rates of kitchen items on a weekly basis, increased by 1.51 percent during the first five months of the year 2016-17, as against the same month last year. Similarly, the Wholesale Price Index (WPI) based inflation increased by 3.05 percent in the period under review.

The break-up of 3.81 percent inflation, recorded in November, showed that food and non-alcoholic beverages prices increased by 2.5 percent. Similarly, health and education charges went up by 8.13 percent and 11.54 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 4.92 percent in November 2016.

Meanwhile, prices of alcoholic beverages and tobacco went up by 17 percent, clothing and footwear 4.23 percent and furnishing and household equipment maintenance charges 3.44 percent. Recreational charges and those related to culture went up by 1.41 percent in the period under review, while amounts charged by restaurants and hotels by 5.24 percent in November 2016 as compared to the same month last year.

In food commodities, the price of eggs increased by 23.21 percent, potatoes by 21.04 percent and pulse gram price surged by 7.28 percent. The price of ‘besan’ enhanced by 5.85 percent and that of sugar by 3.85 percent. Similarly, prices of gram (whole) went up by 2.82 percent and mustard oil by 1.46 percent. Likewise, in non-food items, woollen readymade garments price surged by 2.78 percent and woollen cloth price increased by 1.22 percent in November.

According to the PBS figures, prices of tomatoes decreased by 14.63 percent, fresh fruits by 7.95 percent, onions by 5.66pc, pulse (mash) 3.98pc and chicken prices declined by 3.77pc in November.

 

ePaper - Nawaiwaqt