December 14, 2006	Thursday	Ziqa'ad 22, 1427

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ISLAMABAD, Dec 13: Constant increase in food items and fuel prices pushed the domestic inflation up by 8.07 per cent in November 2006 against figures for the same month last year.

Inflation measured through consumer price index (CPI) went up by 0.73 per cent in November over the previous month. The month-on-month comparison indicated that prices of consumer items had been steadily rising during the month under review.

Figures released by the Federal Bureau of Statistics on Wednesday showed that the inflation increased by 8.29 per cent year during the first five months (July-Nov) of the fiscal year 2006 over the same period last year.

Food inflation, which rose by 10.62 per cent during November 2006 over figures for the same month last year, had pushed up the overall inflation, which would have a direct impact on low-income groups.

A double-digit inflation of 10.51 per cent in fuel costs was the second contributor in pushing up the over all inflation. This resulted in increasing the transportation charges mostly used by the middle- and low-income people.

According to various economists, keeping in view the rising trend in inflation, it now seemed impossible to bring down the inflation as claimed by the government to 6.5 per cent level.

They said that if the oil prices had been reduced with the international market, it would have had a positive impact on other areas of national economy.They attributed food inflation mainly to rise in prices of milk, vegetables, ghee and pulses, adding that the double digit inflation would certainly impact on the monthly budget of the poor.