September 13, 2008	Saturday	Ramazan 12, 1429

ISLAMABAD, Sept 12: Inflation rose to 24.83 per cent during the first two months of the current fiscal year on the back of spiralling food and energy prices. The rate was 6.41 per cent for the corresponding period last year. The inflation, measured by the Consumer Price Index, recorded the highest-ever increase of 25.33 per cent in August, compared to 6.45 per cent over the same month last year.

Analysts said that inflation would go up further because there was no let-up in prices of food, energy, education, healthcare, house rent and transportation.

They said that although prices of oil had fallen to $100 per barrel in the international market, the government had not passed on the relief to consumers.

The government has set the annual inflation target for 2008-9 at 12 per cent.

Figures released by the Federal Bureau of Statistics on Friday showed that food inflation increased to 34.01 per cent in August.

Prices of non-perishable food items witnessed a surge of 37.58 per cent and that of perishable items 35.26 per cent. Industrial goods have also recorded a tremendous increase during the month under review, belying the argument that the rise is seasonal.

Prices of tomatoes, potatoes, spices, tea, sugar, onions, masoor pulse, milk powder, wheat, beverages, vegetable ghee, cooking oil, fresh milk, honey, milk products, bakery and confectionary items, flour, meat, rice, cereals, whole gram, gur, eggs, pre-cooked food and mustard oil saw an unprecedented rise last month.

The analysts warned the government that the trend was pushing the country into a long-term recession.

The non-food and non-energy core inflation swelled to 16.1 per cent in August from six per cent last year on account of rising house rent and sub-indices related to medical care. The house index rent rose by 14.18 per cent and medical care cost by

9.90 per cent.