KARACHI - The year-on-year based CPI inflation in the major cities like Karachi, Quetta and Peshawar remained higher, running at 25.2, 27.4 and 26.2 per cent respectively in the month of September 2008 than the overall CPI inflation for Pakistan during the period under review.   Similarly, inflation (YoY) in major cities including Islamabad, Lahore, registered an increase during September 2008 to reach 21.5, 21.0 per cent respectively compared with 7.6, 7.9, 8.1, 7.8 per cent in the same month of last year. According to SBP report, city-wise inflation (YoY) based on all 35 cities indicates that 19 cities fall in the category of high inflation, while remaining 16 cities recorded inflation below average CPI inflation. During the month under review Turbat recorded the highest inflation at 33.2 percent, followed by Bannu (32.2 percent) and Loralai (31.5 percent). On the other hand, the lowest CPI (YoY) inflation was recorded in Multan (19.1 percent). Comparison of CPI food and non-food inflation (YoY) among 35 cities revealed that, highest food inflation (YoY) was recorded in Turbat (43.6 percent) and lowest in D G Khan (19.5) percent), whereas the highest nonfood inflation was also observed in Turbat (25.9 percent) and the lowest in Multan (16.5 percent) during September 2008. Report indicates that headline CPI inflation remained strong at 23.9 percent (YoY) in September 2008. While this was sharply higher compared to 8.4 percent in the same month last year, the September 2008 inflation was slightly lower than in the previous month - the first break in a six month uptrend. This slowdown in the headline inflation can be attributed mainly to the food group of CPI registering 29.9 percent YoY inflation during the month under review as against 34.1 percent in August 2008. On the other hand, non-food inflation (YoY) maintained its uptrend witnessed in the recent past and reached 19.2 percent in September 2008 compared to 18.7 percent during the previous month. Among the various components of CPI nonfood group, transport & communication, house rent index (HRI) and fuel & lighting sub-groups witnessed significant increase in inflation (YoY) during September 2008 compared to the same month last year. Other measures of inflation i.e. wholesale price index (WPI) and sensitive price indicator (SPI) followed the trend of CPI and showed slight ease in inflationary pressure during the month under review as compared to August 2008 CPI, on month-on-month (MoM) basis, registered 1.0 percent inflation compared to 2.1 percent in the same month last year. CPI food inflation (MoM) was recorded at 0.9 percent compared to 4.2 percent in September 2007. CPI non-food inflation (MoM) however, stayed higher at 1.0 percent compared to 0.6 percent in the same month last year. Core inflation, measured by both non-food non energy and 20 percent trimmed mean, continued to show consistent acceleration during September 2008. Core inflation (YoY) based on NFNE reached 17.3 percent in September 2008 compared to 6.1 percent in the same month last year. Similarly core inflation (YoY) based on 20 percent trimmed-mean also witnessed significant increase reaching 21.2 percent compared to 8.0 percent in September 2007. Wholesale price index (WPI) recorded lower inflation (YoY) of 33.2 percent during September 2008 compared to 35.7 percent in the previous month. Both food and non-food groups of WPI also witnessed relatively low inflation during the month under review compared to the previous month. WPI food group inflation (YoY) dropped to 30.6 percent in September 2008 compared to 33.5 percent in August 2008. WPI non-food inflation (YoY) fell to 35.2 percent during September 2008 compared to 37.4 percent in August 2008. CPI food inflation (YoY) eased somewhat during September 2008 compared to a secular uptrend during the preceding six months. However, despite this small moderation the September 2008 figure remained 16.9 percentage points higher than in September 2007. A detailed analysis of CPI food basket showed that out of 112 items reported in the basket, 85 including pulse masoor, rice, chilli powder, wheat, mustard oil, vegetable ghee, cooking oil, etc. exhibited price change between 10 percent to 138 percent, 19 showed a price change between 0 to 10 percent and remaining 8 either declined or remained unchanged (7 declined and 1 remained unchanged). Price of four items i.e. coriander seed powder (138 percent), pulse masoor (126 percent), rice irri-6 (101 percent) and cuminseed white (101pc), recorded significant increase during the month under review. Similar to previous month weighted contribution, six out of top ten items of CPI basket were from the food group during September 2008 including wheat flour, fresh milk, vegetable ghee, rice, fresh fruits and readymade food. Combined weighted contribution of these food items in the overall inflation was recorded at 36.1 percent. Moreover, within food group, just four items i.e. wheat flour, milk fresh, vegetable ghee and rice contributed about 57.3 percent to the YoY food inflation.