ISLAMABAD - The inflation rate has gone down to 18-month lowest side of 5.8 percent during October 2014 over the corresponding month of previous year.

Inflation rate based on consumer price indicator (CPI) - the main national indicator reflecting change in prices of basket of goods and services - has recorded at 5.8 percent in October as compared to same month last year. The inflation rate of 5.8 percent in lowest in last one and half year, as previously the lowest inflation rate was of 5.1 percent in May 2013, showed the data of Pakistan Bureau of Statistics.  

The inflation rate is on the declining side due to the unchanged petroleum products prices in the country. The government has kept prices of diesel and petrol unchanged for in three months (July-September). The experts believed that inflation might further decline in the current month as the government reduced the petroleum products prices significantly for the month of November. The government could achieve the inflation rate target of 8 percent during ongoing financial year 2014-15 if declining trend of petroleum products prices continued in next few months.

According to the data of the Pakistan Bureau of Statistics, CPI based inflation has recorded at 7.09 percent during first four months (July to October) of the ongoing financial year over the corresponding period of the last fiscal year. Meanwhile, the sensitive price indicator (SPI), which gauges weekly inflation in kitchen items, has decreased by 5.14 percent in July-October 2014 as against the same month of last year. Similarly, the Wholesale Price Index (WPI) based inflation increased by 3.44 percent in the period under review.

According to the PSB figures, on month-on-month basis, it increased by 0.2 percent in October 2014 as compared previous month (July) and by 2 percent in October 2013.

Meanwhile, the break-up of CPI based inflation (5.82 percent) in October 2014 showed that prices of food and nonalcoholic beverages shot up 4.41 percent, alcoholic beverages and tobacco 22.16 percent, clothing and footwear 8.53 percent, housing and utilities charges 5.62 percent, transportation fares 3.95 percent and healthcare charges 5.93 percent as compared to October 2013. Meanwhile, charges of recreation and culture were up by 3.95 percent, education 14.59 percent, restaurant and hotel 8.5 percent and miscellaneous by 5.76 percent in the period review.

Meanwhile, the PBS data showed that price of fresh fruits increased by 3.3 percent in the month of October 2014 against September, price of dry fruits enhanced by 1.83 percent, price of pulse washed went up by 1.59 and price of pulse gram surged by 1.02 percent in October compared to September. Similarly, in non-food items, the house rent increased by 1.4 percent during the period under review.

Meanwhile, prices of following commodities decreased tomatoes 12.12 percent, chicken 4.22 percent fresh vegetables 4.22, onions 2.47 percent, sugar 2.45 percent and potatoes 1.51 percent during the period under review. Similarly, in non-food commodities, price of kerosene oil reduced by 1.36 percent and motor fuel 1.21 percent during October over September.