February 15, 2006	Wednesday	Muharram 16, 1427

ISLAMABAD, Feb 14: Inflation stood at 8.48 per cent year-on-year during the seven months of the fiscal year 2005-06 mainly due to increase in the prices of sugar, pulses, education and transport.

Official statistics released by Federal Bureau of Statistics (FBS) here on Tuesday, however, indicated that in January 2006, the year-on-year increase in inflation was 8.76 per cent.

The inflation increased by 1.20 per cent during the month of January 2006 over the previous month of December, which showed that the annual target of 8 per cent could not be maintained by end of the year.

Inflation measured by the Consumer Price Index (CPI) is creeping steadily upward during the current year. However, the inflation declined slightly to 7.37 per cent in November 2005 but again increased to 8.43 per cent in the month of December 2005.

The more disturbing aspect of the current year inflation figure is that the factors behind them housing, food and POL prices disproportionately affect the poor. The increase in rents could possibly have a spiralling effect, with owners of houses demanding higher rents in response to an overall increase in general price level.

According to a group-wise analysis, the food and beverages group recorded a growth of 8.17 per cent when compared with the same month of the last year; house rent up by 9.87 per cent; household, furniture and equipment up by 4.41 per cent, education up by 6.70 per cent; fuel and lighting up by 12.32 per cent over the same month last year.

Among this group, the price of tomatoes rose by 100.26 per cent during the month under review over the previous month of December 2005, vegetables (10.17 per cent), onion (6.82 per cent), fresh fruits (3.36 per cent), gram whole (3.11 per cent), pulse moong (2.66 per cent), gur (1.77 per cent), pulse mash (1.39 per cent), dry fruit (1.34 per cent), readymade food (1.16 per cent) and wheat (0.90 per cent).

The transport and communication recorded a growth of 18.36 per cent during the month of January 2006 over the same month of the last year. In this group, the train fare increased by 9.50 per cent and CNG filing charges by 7.73 per cent, natural gas by 14.08 per cent and fire wood by 2.19 per cent.

In the group of apparel, textile and footwear, the hosiery price rose by 1.43 per cent and footwear by 0.96 per cent. Jewellery registered a growth of 1.64 per cent.

However, the price of following items declined potatoes (13.85 per cent); eggs (6.91 per cent); chicken farm (3.30 per cent); and pulse masoor (1.48 per cent) during the month of January 2006 over the previous month of December 2005.