SPI-based inflation up 20.54pc

ISLAMABAD - Led by a robust growth in food prices, the Sensitive Price Indicator (SPI) based inflation edged up to 20.54 percent last week over the corresponding period last year owing to the recent devastating floods and increase in POL as well as power prices. The Federal Bureau of Statistics figures on Saturday showed that the SPI based inflation, rose to 20.54 percent in the week ended on November 25 over the corresponding period last year. Ahead of the implementation of the RGST from the next year, the rising food prices could be one of the most critical problems for the government, as proposed consumption tax would further accelerate food inflation. According to economic experts, prices of all food as well as non-food items would go up after the implementation of RGST. The inflation is steadily on the rise for the last three months on the back of higher than expected surge in food prices, particularly sugar, vegetables and edible oil during the period under review over last year. The government has initially projected a target of 9.5 per cent for inflation for the year ending on June 30, 2011. However, the inflation target has been further revised upward to around 15 percent in the wake of rise in commodities prices and electricity tariff. According to the FBS figures, the inflation based on Sensitive Price Indicator (SPI), went up by 20.93 percent for the lowest income group (earning just Rs 3000 per month), while reducing by 0.90 percent on weekly basis. Meanwhile, it was recorded at 20.56 percent for the income group of Rs 3001 to Rs 5000 during the week, followed by 20.36 percent for the groups falling under the category of having income from Rs 5001 to Rs 12000. However, the SPI-based inflation was recorded at 20.58 percent for high-income group (above Rs 12000), while it reduced by 0.59 percent last week over the same period of the last fiscal year. Out of the samples of 53 kitchen items, prices collected from 25 urban centres, 15 items showed increase in prices, 13 items registered decline and the prices of 25 items remained unchanged as compared to the previous week. APP adds: Meanwhile, fruit and vegetable vendors are selling fruit without having any official rate lists and overcharging the public int win cities of Rawalpindi and Islamabad especially in the federal capital. Shoppers complained that overcharging, sale of substandard fruit and vegetables and non-availability of good quality items were main features of vendors as the official concerned failed to keep a check on the quality and rates of the commodities. Hameed Khan, a shopper in Sector F/6, said that there was no check on the prices of vegetables and fruits. He said when he asked a vegetable vendor to show the price list, he simply refused. The shoppers have demanded the authorities to take action against the violators.

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