Inflation exceeds budgetary target: Up by 8.1pc in 10 months
By Our Reporter
ISLAMABAD, May 11: Inflation rose by 6.92 per cent during the month of April 2007 over the same month of the last year mainly because of stable oil prices in domestic market, Federal Bureau of Statistics (FBS) said on Friday.
This would be the second lowest increase in inflation so far recorded in any month of the current fiscal year because of the falling oil prices in international market. In January 2007, the growth in inflation was 6.6 per cent. The average increase in inflation during the last 10 months was 8.14 per cent.
The statistics showed that inflation measured through Consumer Price Index (CPI) was up by 0.31 per cent in April 2007 over the previous month of March 2007. The inflation was up by 7.89 per cent in the first 10 months of the current fiscal year as against the same period of the last year.
The government expected that the end year inflation would be around seven per cent this year as the government found it very difficult to keep inflation below six per cent - a target set in the last budget despite the tight monetary policy of the State Bank of Pakistan.
The slowdown in inflation during the month under review was mainly due to constant decrease in prices of POL products. It is clear from the fact that transport and communication prices witnessed a negative growth of 2.39 per cent during the month under review over the last year.
The food inflation witnessed a growth of 9.41 per cent during the month of April 2007 over the same month of last year. This showed that food prices are still higher as the supply of essential commodities like potato, onion etc might decrease in the market.
Among the food items the price of tomatoes was up by 22.65 per cent, vegetables 7.83 per cent, fresh fruits 6.43 per cent, vegetable ghee 5.98 per cent, cooking oil 4.97 per cent, chicken (farm) 4.39 per cent, mustard oil 2.10 per cent, beverages 1.46 per cent, milk powder 1.31 per cent, rice 1.29 per cent, dry fruit 1.21 per cent, wheat flour 1.01 per cent, milk fresh 0.72 per cent and meat 0.61 per cent.
The house rent was constantly on the rise during the last 10 months. It rose by 0.43 per cent in April as against March 2007. An average growth of 0.4 per cent was recorded in house rent during the last 10 months of the current fiscal year. The government remained silent about this phenomenal increase in the house rent, which would have serious implications on the monthly budget of the low income group and the middle class.
Similarly, the doctor's fees and medicines are also witnessing a steady upward increase during the last 10 months. It recorded the highest increase of 10.08 per cent in April 2007 over the same month of the last year.
Another important area from consumers’ point of view - education fee and textbooks - was also under tremendous inflation. The education sector recorded an average growth of over 6 per cent during the last 10 months of the current fiscal year.
