ISLAMABAD - The higher food commodities prices pushed the inflation rate up to 3.86 percent during September over a year ago.

The inflation measured through Consumer Price Index (CPI) has recorded at 3.86 percent during September against same month of the last year, according to the latest data of Pakistan Bureau of Statistics (PBS) released on Monday. The inflation has recorded increase due to higher food commodities prices.

Meanwhile, the government has also enhanced the prices of petroleum products prices up to Rs4 per litre for the ongoing month. The government has enhanced the prices of petrol, high speed diesel and light diesel oil by Rs2 per litre each. The increase in oil prices would fuel the inflation rate, which is currently under control.

The State Bank of Pakistan (SBP), in its latest monetary policy, had maintained the interest rate at 5.75 percent due to control inflation rate. On the back of adequate food supplies and stable international commodity prices, headline inflation decelerated in the first two months of FY18. With comfortable wheat and sugar stocks, no major disruption is expected from supply side in the coming months of FY18. However, the core inflation (non-food-non-energy), reflecting the underlying demand pressures in the economy, continues to maintain its higher level of 5.6 percent in the initial two months of the fiscal year. This is also visible from IBA-SBP’s Consumer Confidence Survey of September 2017, which shows a modest rise in expected inflation during the next six months. Thus, with these demand and supply side dynamics, average CPI inflation is expected to remain well below FY18 target of 6.0 percent.

The government has kept the inflation below the target of six percent for the ongoing fiscal year 2017-18. According to PBS, the CPI based inflation has recorded at 3.39 percent during first quarter (July-September) of the current fiscal year. The Sensitive Price Indicator (SPI), which gauges rates of kitchen items on weekly basis, has increased by 0.48 percent. Similarly, the wholesale price index (WPI) based inflation enhanced by 1.1 percent in the period under review.

The break-up of inflation of 3.86 percent showed that food and non-alcoholic beverages prices have increased by 3.5 percent. Similarly, health and education charges went up by 11.41 percent and 8.27 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 5.32 percent in last month.

Meanwhile, the prices of alcoholic beverages and tobacco went down by 16.29 percent. Price of clothing and footwear increased by 3.93 percent and furnishing and household equipment maintenance charges by 3.07 percent. Recreational charges and those related to culture went up by 0.32 percent in the period under review, while amounts charged by restaurants and hotels by 5.63 percent in September 2017 as compared to the same month last year.

In food commodities, prices of onions increased by 98.33 percent, tomatoes 58.46 percent, fresh vegetables 10.16 percent, eggs 4 percent, wheat 2.1 percent and gram whole 1.68 percent during September 2017. According to the PBS figures, price of chicken decreased by 16.19 percent, fresh fruits 11.13 percent, sugar 6.69 percent and pulse masoor price down by 1.95 percent during September as compared to July.