January 15, 2008	Tuesday	Muharram 05, 1429

ISLAMABAD, Jan 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 food, housing, education and transport.

Official statistics released by the Federal Bureau of Statistics (FBS) here on Monday, however, indicated that in Jan 2005, the year on year increase in inflation was 8.76 per cent.

The inflation increased by 1.20 per cent during the month of Jan 2005 over the previous month of Dec, 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 Nov 2005 but again increased to 8.43 per cent in the month of Dec 2005.

The more disturbing aspect of the current year inflation figure is that the factors behind them -- housing, food and petroleum prices directly 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.

In Jan 2006, the CPI increased by 1.20 per cent over Dec 2005 and by 8.76 per cent over the corresponding month last year.

According to a group-wise analysis, the food and beverages remained on top as its persisting in rising trend in Jan 2006 and recorded a growth of 8.17 per cent when compared with the same month of the last year; house rent by 9.87 per cent; household, furniture and equipment (4.41 per cent), education (6.70 per cent); fuel and lighting (12.32 per cent) over the month of the last year.

Among food group, the price of tomatoes rose by (100.26 per cent) during the month under review over the previous month of Dec 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), gurr (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 Jan 2006 over the same month of the last year. In this group, the train fare increased by (9.50 percent and CNG filing charges (7.73 percent), natural gas (14.08 percent) and fire wood (2.19 per cent).

In the group of apparel, the textile price rose by (1.43 per cent) and footwear (0.96 per cent). The jewellery registered a growth of (1.64 per cent).

However, the price of potatoes declined by (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 Jan 2006 over the previous month of Dec 2005.