April 13, 2007	Friday	Rabi-ul-Awwal 24, 1428

ISLAMABAD, April 12: Led by a double-digit increase in food inflation, the overall consumer prices jumped again to 7.67 per cent in March 2007 over the same month last year, Federal Bureau of Statistics (FBS) said on Thursday.

In February 2007, the inflation had surged 7.39 per cent from a modest growth of over six per cent recorded in the previous month--the lowest-ever growth in any month of the current fiscal year -- and the government had attributed this fall to its economic policies.

The upward trend in inflation had started for the last couple of months even though the economic wizards of the current government had claimed to have controlled the rising inflationary pressure in the economy.

The food inflation was up by 10.74 per cent in March 2007, which pushes up the whole CPI, basked for the month under review. The items which recorded growth in prices include -- eggs, fresh fruits, rice, vegetables, vegetables, milk powder and chicken.

The inflation measured through consumer price index (CPI) surged by eight per cent in nine months of the current fiscal year over the same period last year. This again showed that the year to year inflation is likely to be between the ranges of eight to nine per cent by the end of June 2007.

The government found it very difficult to keep inflation below six per cent a target set in the budget last despite the tight monetary policy of the State Bank of Pakistan and subsidies.

The statistics indicated that the inflation went up by 0.49 per cent in March 2007 over February 2007. This would be the highest-ever increase in inflation over the previous month this year as it was only 0.23 per cent in March 2006.

Apart from the increase in food items, the medicare charges and education went up by 10.76 per cent and 7.94 per cent, respectively, in March 2007 over the same months last year. This indicates that the charges of the basic facilities, like life-saving drugs and education fees prices sky-rocketed, thus affecting the monthly budget of the poor people.

The government had frozen oil prices in the domestic market for the last couple of months, which had also resulted into lowering the transportation cost and fares. With this the non-food inflation also witnessed a steep decline during the month under review.

Analysts said inflation during the next months would further rise as essential commodities, like potatoes, onions, tomatoes etc., supply in the market might decrease. The unprecedented increase in the liquefied petroleum gas, the recent increase in electricity rates would also push up the over-all inflation.

Price of cloth increased by 7.28 per cent, house rent 6.42 per cent, household goods 7.43 per cent in the month of March 2007 over the same month the last year.