ISLAMABAD - Inflation has increased by 8.3 percent during the first month (July) of the ongoing financial year 2013-14 over the corresponding month of previous year mainly due to one percent increase in general sales tax (GST) and increase in petroleum product prices.

The government in budget has imposed heavy taxation measures worth of over Rs 200 billion that are directly impacting the common people in term of increase in inflation rate. Apart from other taxation measures, the one percent increase in GST has fuel the inflation in the country, as prices of all basic commodities have increase after the budget. Similarly food prices enhanced in the country due to arrival of the holy month of Ramazan in July, as traditionally profiteers increased the prices ahead of holy month. Therefore, inflation rate remained at higher side in July 2013 comparing to last few months.

According to the official figures of Pakistan Bureau of Statistics (PBS), the inflation based on consumer price index (CPI) has recorded at 8.3 percent in the month of July as compared to the same month of last year. The economic experts are of the view that inflation would further fuel in the months to come as government has decided to increase the power tariff and also increase the petroleum product prices for the ongoing month of August.

The economic experts believe that Pakistan Muslim League-Nawaz (PML-N) government would struggle to restrict inflation at eight percent during the upcoming financial year 2013-14 due to imposition of new taxes worth of Rs 200 billion and withdrawal of subsidy.

According to the data released by PBS, Sensitive Price Index (SPI) based inflation surged by 9.8 percent and Wholesale Price Indicator (WPI) based inflation increased by 6.55 percent during the month of July against the same month of the last year. Meanwhile, according to the PBS figures, CPI based inflation increased by 0.7 percent in July 2013 against June.

The break-up of CPI-based general inflation (8.26 per cent in July 2013 over July 2012) showed that food and non-alcoholic beverages prices went up by 8.05 per cent, alcoholic beverages and tobacco prices increased by 14.83 per cent, clothing and footwear prices soared by 14.84 percent, housing water, electricity and gas fuels 6.5 percent, health care charges went up by 7.75 percent, transportation charges reduced 5.74 percent, communication charges 4.9 percent, recreation and culture charges went up by 8.41 percent, education charges 7.56 percent and restaurants and hotel charges by 8.98 percent and miscellaneous 5.37 percent in July 2013 against the same month of the preceding year 2012.

Meanwhile, according to the PBS figures, price of tomatoes increased by 79.83 percent in the month of July against June, prices of potatoes enhanced by 24.87 percent, prices of fresh fruits went up by 13.59 percent, price of cigarettes surged by 11.88, price of eggs increased by 8.95 percent, price of pulse moong surged by 5.84 percent, price of gur went up by 4.56 percent, price of onions enhanced by 4.09 percent, price of wheat increased by 3.50 percent, price of fresh vegetables soared by 2.94 percent, price of beans enhanced by 2.84 percent, price of wheat falour by 2.42 percent, price of pulse masoor by 1.99 percent, price of tea by 1.78 percent and price of enhanced by readymade food by 1.53 percent during the month of July against the month of June.

According to figures, cost of postal services increased by 23.25 percent, Footwear prices enhanced by 6.28 percent, tailoring cost surged by 3.72 percent, kerosene oil price soared by 2.73 percent, house rent increased by 2.54 percent, construction input items price soared by 2.14 percent   and cosmetics prices went up by 2.06 percent during month of July against June 2013.

Meanwhile, prices of following commodities decreased during the month of July over June, besan 9.27 percent, pulse gram 5.27 percent, gram whole 3.96 percent, chicken 3.71 percent, spices 1.15 percent, cooking oil 0.57 percent, pulse mash 0.43 percent and vegetable ghee 0.08 percent.