ISLAMABAD-Inflation rate is once again getting out of government’s control, as consumer price indicator (CPI) has surged to 9.2 percent in April 2014 over a year ago.
The government had controlled the inflation rate till last couple of months. However, it has once again rebounded from last two months, as it recorded at 8.5 percent in March and 9.2 percent in April 2014 as against corresponding period of previous year. Earlier, the government has restricted it at 7.9 percent in January as well as in February. According to the latest figures of Pakistan Bureau of Statistics (PBS), CPI inflation has enhanced by 1.7 percent in April 2014 over March. Prices of basic food commodities have increased in the month under review. Meanwhile, according to the figures, inflation has recorded at 8.69 percent during ten months (July-April) of the ongoing financial year 2013-14 over the same period corresponding period.
The government would struggle to restrict inflation rate at eight percent during ongoing financial year, as already predicted by International Monetary Fund (IMF), Asian Development Bank and State Bank of Pakistan. IMF and SBP forecasted that inflation rate would remain in double digits during current fiscal year.
Economists termed the soaring food prices and massive banking borrowing responsible for increasing inflation rate in the country. “The government is making massive borrowing from the State Bank of Pakistan that will definitely putting impact on inflation”, said Dr Ashfaque Hassan Khan. Talking to The Nation he said government took more loans in April this year compared to last year. Similarly, he added food prices are also behind the increase in inflation rate. Talking about the government’s target, Dr Ashfaque said, “Government will have to bring inflation rate to 6-7 percent in next two months (May and June) to restrict it eight percent”. “This is not difficult task for Pakistan Bureau of Statistics, as they would have to restrict it at eight percent if government asks them to do”, he concluded.  According to the PBS figures, prices of food and nonalcoholic beverages shot up 9.53 percent, alcoholic beverages and tobacco 16.09 percent, clothing and footwear 11.24 percent, housing and utilities charges 9.65 percent, transportation fares 4.21 percent and healthcare charges 7.05 percent in April 2014 as compared to April 2013. Charges of recreation and culture were up by 7.02 percent, education 14.34 percent and restaurant and hotel 13.59 percent.
Meanwhile, the PBS data showed that price of potatoes increased by 42.06 percent in the month of April against March, price of fresh fruits enhanced by 22.02 percent, price of fresh vegetables went up by 14.72 percent, price of onions surged by 9.04 percent, price of beverages increased by 3.46 percent, price of Betel Leaves & Nuts surged by 2.87 and price of chicken up by 2.63 percent. Similarly, in non-food commodities, prices of following commodities increased.  Education 9.68 percent, Text Books 4.26 percent, Marriage Hall Charges 2.79 percent, cotton clothe 2.77 percent, stationary 2.7 percent, medical equipments 2.17 percent and House Rent 2.1 percent. Meanwhile, prices of following commodities decreased. Eggs 24.48 percent, tomatoes 13.56 percent, wheat 6.91 percent, wheat 6.91 percent, wheat flour 2.46 percent and wheat product 1.26 percent. Similarly, kerosene oil decreased by 4.76 percent, personal equipments decreased by 2.50 percent, Motor Vehicles 1.70 percent and Motor Fuel 1.18 percent in April over March 2014.