KARACHI: Inflation hits all aspects of life and impacts upon all areas of the country but Karachi emerged as the cheapest among all towns and cities except Vehari, a small town in Punjab.

This was revealed in detailed report of Inflation Monitor-December 2013 recently issued by the State Bank. The report however did not provide reasons that why this mega city was the cheapest among all big cities of Pakistan.

According to the report, Islamabad was on top of the list where the main inflation CPI (Consumer Price Index) was highest in December 2013. Almost all major cities of Pakistan were included in the list of high inflation except Karachi.

Karachi was included in the list of low inflation areas and was named in the second last of the list.

At the end of December (year-on-year basis) the main inflation for Islamabad was 15.5 per cent, food inflation 11.4pc and non-food was 18.7pc which was the highest compared all parts of the country. The main inflation for the country in December was 9.2pc.

Being strongest political power after Islamabad, Larkana embraced second highest inflation of 13.9pc mainly led by food inflation of 14.3pc.

Dera Murad Jamali witnessed highest food inflation of 14.9pc, even higher than Islamabad.

Provincial capitals like Peshawar and Quetta were also listed among the cities with high inflation of 13.2 per cent and 10.4 per cent and food inflation, 13.5pc and 12.6pc, respectively.

Lahore has been listed among the low inflation cities as the CPI was 8pc led by food inflation of 9.5pc.

The main inflation in Karachi was 6.5pc with food inflation 6.4pc and non-food 6.5pc. An analyst said the low inflation was due to large capacity of the city for consumptions and being largest trading hub as well as biggest production house.

Despite this low inflation with other attractions, Karachi is not the tourist place as hotel industry witnessed low occupancy.

The main inflation in Vehari was 5.5pc, food inflation 5.4pc and non-food inflation 5.6pc.