March 13, 2003	Thursday	Muharram 9, 1424

ISLAMABAD, March 12: Inflation based on Consumer Price Index (CPI) spiralled by 3.53 per cent during eight months period (July-Feb) of 2002-03 over the corresponding period of previous year.

Sensitive Price Indicator (SPI)-based inflation registered faster upward swing with an increase of 4.04 per cent during the period under review.

WPI: The two indices were out-paced by the Wholesale Price Index (WPI) — 5.66 per cent — whose impact is cast on both CPI and SPI, causing them to leapfrog from week to week and from month to month, it is indicated by the Monthly Review of Price Indices for February 2003, released by the Federal Bureau of Statistics here on Wednesday.

Thus the table for February 2003, shows that WPI shot up by 9.77 per cent as compared to the same month of previous year. Not unexpectedly, there was an increase of as much as 29.38 per cent in the WPI for “Fuel, lighting & lubricants” group within the past one year and by 7.35 per cent in the single month under review.

In this group, the cost of motor fuel went up by 12.37 per cent, other oils by 18.05 per cent and firewood by 2.26 per cent, as compared to previous month.

Not very far behind it, we find the “Raw materials” with wholesale price increase of 15.82 per cent over February 2002. As compared to January 2003, there was a spurt of 1.86 per cent. Specifically, the cotton and groundnut seed including in this group became costlier by 6.07 and 3.92 per cent, respectively, in the wholesale market.

Manufactures recorded an increase of 5.80 per cent in February 2003 over the past one year and of 1.47 per cent over January 2003. In this group, cotton yarn prices surged by 6.75 per cent, those of blended yarn by 2.12 and hosiery by 1.32 per cent.

The Food Group index under WPI rose by 2.47 per cent during the month under review over the same month of previous year. As compared to previous month, the FBS data shows an increase of 0.45 per cent for foodstuffs.

A modest increase of 0.95 per cent in WPI for building materials over the corresponding month of previous year signifies only the slowdown of construction activity rather than a halt to the price spiral. This includes 0.78 per cent increase incurred within the month of February 2003.

CPI, during the month under review, surged by 3.55 per cent over the corresponding month of previous year and by 0.47 per cent over the previous month. As regards SPI, it spurted by 2.68 and 0.42 per cent, as compared to February 2002 and January 2003, respectively.

According to group-wise analysis of CPI, Education group remained active in terms of the spiral of its cost in a country with 50 per cent of the people unable to read and write and the primary school enrolment subject to decline. During February 2003, the index for education increased by 5.02 per cent over the corresponding period of previous year.

Fuel & lighting including petroleum fuels and electricity became dearer by 9.19 per cent over the past one year. When compared to January 2003, it increased by 0.25 per cent.

But the highest increase was recorded in respect of Transport & Communication. It swung up by 9.93 per cent over February 2002, and by 2.80 per cent over the previous month.

Other groups recorded increases in CPI as follows when compared to February 2002, with rise in prices over previous month given in parentheses:

Food & beverages: 2.65% (0.51%); apparel, textile & footwear: 4.31% (000%); house rent 0.50% (0.05%); household, furniture & equipment etc.: 3.21% (0.28%); recreation & entertainment: 0.90% (0.03%), cleaning, laundry & personal appearance: 5.72% (0.22%) and Medicare 2.76% (000%).

The main commodities which showed increase in their prices during February 2003 over January 2003 are:

Food and Beverages: Tomatoes (18.40%), fresh fruits (7.06%), wheat (2.64%), sugar (1.96%), meat (1.92%), wheat flour (1.58%) and vegetables (0.98%).

Fuel and Lighting: Kerosene (10.58%) and firewood (1.14%).

Household, Furniture & Equipments etc.: Marriage hall charges (2.36%).

Transport & Communication: Diesel (15.07%), petrol (8.33%) and communication (1.56%).

Cleaning Laundry & Personal Appearance: Jewellery (2.42%).

The main items which showed a decrease in their prices during February 2003 over January 2003, are:

Food & Beverages: Potatoes (0.42%), onions (9.33%), eggs (6.12%), chicken farm (4.47%), pulse gram (3.15%), pulse mash (1.99%), besan (1.83%), spices (1.21%) and mustard oil (0.98%).