ISLAMABAD - Inflation measured through Consumer Price Index, which calculates the prices of around 481 commodities, increased to 3.9 percent in September 2016 as against the same period of previous year.

According to the fresh data of Pakistan Bureau of Statistics, inflation was recorded at 3.86 percent in first quarter (July-September) of the ongoing financial year as against same period of last year.

The government has set the inflation rate target at 6 percent for the current fiscal year.

The Asian Development Bank (ADB) has projected that inflation is expected to increase to 4.7 percent in FY2017 from 2.9 percent of FY2016 due to expected oil price rises and stronger domestic demand in an increasingly supply constrained economy.

The State Bank of Pakistan (SBP) noted in its latest monetary policy that uncertain global oil price continue to remain a major determining risk to the inflation rate. The Monetary Policy Committee of the SBP decided to maintain the policy rate at 5.75 percent.

“The year-on-year CPI inflation rose to 3.6 percent in August 2016 from 1.8 percent in August 2015, while the average inflation during the first two months of the current fiscal year was more than double the same period last year. Similarly, the core inflation (measured as both non-food non-energy and 20 percent trimmed mean) during this period was also higher than the last year. The expected pick up in domestic demand is largely going to determine the inflation path in the remaining months of FY17,” the SBP noted.

The PBS data showed that Sensitive Price Indicator (SPI), which gauges rates of kitchen items on weekly basis, increased by 1.89 percent in first quarter of 2016-17 as against the same month last year. Similarly, the wholesale price index (WPI) based inflation increased by 3.29 percent in the period under review.

The breakup of 3.9 percent inflation, recorded in September, showed that food and non-alcoholic beverages prices increased by 3.14 percent. Similarly, health and education charges went up by 6.96 percent and 10.19 percent, respectively. Similarly, prices of utilities (housing, water, electricity, gas and fuel) increased by 4.31percent in September 2016.

Meanwhile, the prices of alcoholic beverages and tobacco went up by 17.47, clothing and footwear at 4.44 percent and furnishing and household equipment maintenance charges 3.44 percent. Recreational charges and those related to culture went up by 1.42 percent in the period under review, while amounts charged by restaurants and hotels by 5.9 percent in September 2016 as compared to the same month last year.

In food commodities, price of onions increased by 12.72 percent, eggs 5.39pc, fresh vegetables 3.4pc, honey 1.38pc and potatoes rate enhanced by 1.19 percent. Likewise, in non-food items, cost of medical equipment increased by 2.56 percent, education charges enhanced by 2.38pc and price of drugs and medicines went up by 1.72pc during the period under review.

According to the PBS figures, prices of tomatoes decreased by 4.91 percent, chicken 3.99pc; pulse (mash) 3.91pc and dry fruits 1.55pc in September.