ISLAMABAD, Oct 11: Inflation edged up to 24.25 per cent during the first quarter of the current fiscal year compared with 7.07 percent over the corresponding period last year, official data compiled by the Federal Bureau of Statistics revealed on Saturday.

Driven by food and fuel prices, the headline inflation still remains very high during the period under review despite decelerating a bit in September from August this year.

The inflation rate, which is based on the consumer price index, rose to 23.91 per cent in September, compared with a 25.33 per cent increase in August depicting a slight decrease. However, the rate was 8.37 per cent for the corresponding month last year.

The government has projected a target of 12 per cent for inflation for the year ending on June 30, 2009. The IMF expects full year inflation to end at an annual average rate of 23 per cent.

Analysts said the inflation will remain on the higher side for the next several months owing to increase in domestic oil and upward revision of electricity tariffs. The pace of price rises, particularly of wheat, sugar will accelerate further in the coming months.

Figures released here showed that food inflation increased to 29.91 per cent in September over the same month last year. Prices of non-perishable food items witnessed a surge of 37.61 per cent and that of perishable items 44.82 per cent. Industrial goods have also recorded a tremendous increase during the month under review, belying the argument that the rise is seasonal.

The non-food and non-energy core inflation swelled to 17.8 per cent in September 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 15.03 per cent and medical care cost by 10.73 per cent.

The non-food inflation rose to over 22 per cent in September over the same month last year. The government raised prices of fuel products excluding petrol in September for the seventh time in five months, by between 12 per cent and 18 per cent.

The petrol price was reduced marginally as global oil price reduced from highest peak of $147 per barrel to around $80 per barrel.

But to reduce pressure on balance of payments, the government has started phasing out subsidies on oil, which led to persistent increase in the price of diesel resultantly the transportation fares increased highest ever.

The transportation fare increased by all time high 40 per cent during the month of September over the same month last year.