October 15, 2006	Sunday	Ramazan 21, 1427

ISLAMABAD, Oct 14: Inflation measured through consumer price index (CPI) rose by 8.43 per cent during the first quarter (July-September) of the current fiscal over the corresponding period of last year owing to constant increase in prices of daily items, house rent and petroleum products.

Federal Bureau of Statistics (FBS) data released here on Saturday showed that the CPI registered a growth of 8.73 per cent in September 2006 over the same month last year. While CPI geared up 0.32 per cent in September 2006 over the previous month of August 2006.

The food inflation, which rose by 11.26 per cent during the first quarter over the last year’s quarter, was mainly responsible for overall increase in the inflation.

Among the food group, the products which registered growth in their prices include onion, besan, gram whole, eggs, pulse gram, betel leaves, gur, cooking oil, mustard oil, dry fruit , tea, readymade food, vegetable ghee, vegetables, rice, wheat, jam, tomato, pickle & vinegar and wheat flour.

Similarly, the continuous increase in the house rent, doctor’s fee and education bill had also pushed up the inflation in September 2006 over the corresponding month last year hitting the low income group.

Dr A. R. Kamal, renowned economist and former director of Pakistan Institute of Development Economics (PIDE), told Dawn that the double digit growth in food inflation would have direct bearing on the middle and low income groups.

He said that prices of most of the items in the CPI food basket recorded massive increase during the period resulted in deteriorating their monthly budget. “The richer class will witness lesser inflation,” he opined.

The tight monetary policy being pursued by the central bank may help to bring the overall inflation down but food inflation may remain in double digits due to higher prices of basic kitchen items -- sugar, pulses, wheat, etc., he observed.

“In the next three to six months, the food inflation may start showing signs of easing,” Dr Kamal added.

The house rent was constantly on the rise during the last seven months. It rose by 0.42pc in March, 0.62pc in April, 0.60pc in May, 0.52pc in June, 0.54pc in July, 0.55pc in August and 0.56pc in September 2006 over the previous months of the same year.

The government remained silent about phenomenal increase in the house rent which would have serious implications on the monthly budget of the low and middle income class.

The prices of following commodities rose during September 2006 over the previous month: onion (7.40pc), besan (7.15pc), gram whole (6.21pc), eggs (5.74pc), pulse gram (5.47pc), betel leaves & nuts (3.40pc), gur (2.93pc), cooking oil (2.36pc), mustard oil (2.30pc), dry fruit (2.17pc), tea (2.13pc), readymade food (1.69pc), vegetable ghee (1.66pc), vegetables (1.40pc), rice (1.07pc), wheat (1.06pc), jam, tomato, pickle & vinegar (0.99pc), wheat flour (0.94pc), bulb & tube (1.93pc); furniture (0.93pc), household servant (0.91pc) and plastic products (0.70pc); text books (1.82pc), tuition fee (1.28pc) and doctor’s fee (3.87pc).